S&P gives notice of outsourcing, talks of alternatives to follow

STANDARD & POOR’S – Attorneys representing Standard & Poor’s late Thursday afternoon (after normal business hours) provided the Guild with a 90-days’ notice of its intention to subcontract finance and accounting services to Genpact. Although we received notice, the information it provided was incomplete and the Guild will need to seek more details.

Although the training of Genpact employees will continue, Attorney Bernard M. Plum of Proskauer Rose, representing S&P, has assured the Guild that management will follow provisions of the union contract regarding the outsourcing and will negotiate in good faith, giving the Guild an opportunity to provide alternatives to the subcontracting plan. He said Genpact officials have been advised that the Guild portion of the outsourcing contract, which was signed on June 1, would have to be broken, if such an agreement is reached.

In the interim, the Guild met with management officials today to negotiate the training of Genpact employees and compensation for S&P employees providing that training and potential severance issues. The Guild and management are working on a Memorandum of Agreement. Details of that meeting and other issues surrounding the proposed outsourcing will be discussed in a Spotlight early next week and at a joint Client Services Department/Unit Council meeting next Friday from noon to 2 p.m. in the Bayview Room.