KEY POINTS:
Accountants KPMG is offering 80 Christchurch staff one-off payments of up to $15,000 to stay with the firm, after an acrimonious split in the
firm.
The Christchurch business has been split by a breakaway group of five KPMG partners who are joining rival Ernst & Young and tried to take staff with them, The Press newspaper reported.
On Monday last week KPMG senior partner Bruce Gemmell and the practice's remaining four partners announced they had left to work for Ernst and Young.
KPMG New Zealand chairwoman Jan Dawson said she was appalled at the way the staff had been dealt with by Gemmell and partners.
Staff were locked out of their office on Monday last week and told to go to a local hotel for breakfast where it was revealed to them the KPMG practice was being integrated with Ernst & Young.
Dawson said staff were presented with a pre-written resignation letter and a new contract with Ernst and Young.
She said staff were left with the impression KPMG was not going to continue in Christchurch.
But Gemmell vehemently denied staff were put under any pressure to work for Ernst & Young.
He was not at the staff announcement because he was handing in his notice at KPMG in Auckland, but said staff were "invited" to be a part of the integrated practice.
Presenting them with a contract and resignation letter was designed to give them some assurance they all had a role, Gemmell said, but nobody was compelled to sign it.
He said once KPMG indicated they would be staying in the Christchurch market, staff were told by him they had a choice and should consider what their opportunities might be.
A press release on the KPMG New Zealand website says: The Christchurch based partners of KPMG retired from KPMG New Zealand effective 29 June 2008 to join a competitor firm. The clients and staff remain with KPMG New Zealand and we are working to minimise the disruption from the action of these former partners."
- NZPA
