Trust aims to cut jobs at home of golf

Gordon Berry, The Courier, 26 February 2009

One of the biggest employers in north east Fife, St Andrews Links Trust, has shocked its workforce by announcing plans for redundancies as the credit crunch strengthens its grip, proving that even the home of golf cannot remain untouched.

The trust, with a budget of around £12 million and around 250 employees, has written to all staff in a bid to avoid compulsory job losses, at a time when the golf tourism outlook for the season ahead appears far from encouraging.

The news will be seen as having effects far beyond the confines of the trust, as St Andrews has been a magnet for massive foreign investment in golf tourism.

Last year, Scottish Golf Tourism said that North American visitor business levels had slumped to compare with those immediately after September 11.

At the time, St Andrews appeared to be immune and the trust was confident about its own position.

Now the situation has changed and the review, which is due to be completed by March 27, will involve all staff, including department managers.

The news has come from general manager Alan McGregor in the year after the formal opening of the multi-million pound Castle Course.

In his letter, Mr McGregor said that that employees will be aware that the UK economy is in deep recession.

He said, “In common with many other organisations, both locally and nationally, we are examining our budgets with a critical eye, having regard to forecasts and evidence that the golf tourism market will be adversely affected in 2009.

“As our income depends very heavily on visiting golfers, it is prudent to try and reduce expenses where possible.

“Payroll represents the largest single expense for the trust, and we therefore propose to try to reduce payroll costs where this can be achieved, without detriment to service and quality.”

Mr McGregor said the trust wished to avoid compulsory redundancies if possible, and that he has written to all employees of St Andrews Links Trust and St Andrews Links golf shops to invite applications for voluntary redundancy.

He said terms would be on an individual basis, and that the trust, in its long term interest, would reserve the right to retain certain employees.

The general manager made it clear that the management team review staffing levels and organisational structures to ensure that levels remain appropriate.

He added that staff would receive an update as soon as possible after March 27, on any recommendations arising from the review process.

“If we have to go down the compulsory redundancy route, any affected employees will be consulted before any decisions are taken” he said.

Asked for comment yesterday, the trust said that, as with many organisations in this difficult economic situation, it had to review its costs to identify any savings that can be made.

“This is a prudent measure to take and will be designed to ensure that the high quality of our courses and services is maintained” said a spokesman.

He was unable to put a figure on the extent of job cuts being sought.

A long-serving employee who called The Courier yesterday said some people had been devastated to receive the letters out of the blue.

He said, “There have been lawyers in and out for days, and now we know why.

“If they want to look at payroll costs they should also look at the top end, were a few employees earn hundreds of thousands of pounds between them. There’s probably about 10% of the payroll there.”

The six links courses are made up of the Old Course, the Eden, Jubilee, New, Strathtyrum and Balgove, and along with the Castle Course they are at the centre of a massive business that has not always had an easy relationship with some local hoteliers and retail businesses.

It now remains to be seen how major hotel operators such as the Old Course and the Fairmont St Andrews will cope.

In December, Fairmont laid off a number of full-time staff, although it successfully pressed ahead with an appeal for planning consent for a major expansion involving “investor homes.”