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Firm with deal for Palm Beach County phones lays off workers [The Palm Beach Post, Fla. :: ](Palm Beach Post (FL) Via Acquire Media NewsEdge) Sept. 06--A Boca Raton company that in July was awarded a $4.5 million contract to replace Palm Beach County government's telephone system has since cut 46 local jobs and is shifting work overseas. The job cuts by Unify, formerly Siemens Enterprise Communications, occurred in August and were not disclosed to Palm Beach County government officials, before or after the contract award in July, according to Steve Bordelon, director of Palm Beach County's information systems services department. Choosing a vendor with a local presence was an important element of awarding the contract. When told by The Palm Beach Post about the layoffs, Bordelon was surprised. "Our concern is that we will have adequate resources in the U.S. to support our system," he said, "and we will seek assurances from the Boca office" as to how the layoffs will affect the installation of the phone system. After talking with this reporter, Bordelon contacted Unify officials, who assured him that the people assigned to the project are experienced and not at risk to be reassigned or laid off during the three-year installation. "But we will probably ask them to more formally confirm that in writing," Bordelon said. "Full disclosure is always the best policy, and in retrospect, it's best to have the most information," Bordelon said. Nonetheless, "I don't think this would have changed our decision....We are confident there is no question about the long-term viability of the company or its ability to perform the contract." The contract was competitive and included bids by Cisco, Avaya and ShoreTel. The new system will support more than 10,000 users and be installed at all county governmental locations (including public safety and fire-rescue facilities), constitutional offices (tax collector, property appraiser, supervisor of elections, clerk and comptroller) and the 15th Judicial Circuit courthouses and offices, including the public defender and state attorney. Palm Beach County Commissioner Steve Abrams, whose district includes Boca Raton, gushed about the Unify contract in a July press release: "I am thrilled that the county is contracting with a local employer on this important project. Whenever possible, one of my priorities is to work with local businesses on county-funded projects." Notwithstanding the big local contract, the Boca Raton office, which is the U.S. headquarters for Unify, is being whittled down as part of Unify's global workforce cutback. In June, Munich-based Unify announced it would cut 3,800 positions from a 7,700-employee workforce, with about 50 percent of the cutbacks coming in central Europe. Unify said it was taking the steps to change from a traditional hardware manufacturer to a software and services company. Bordelon said county officials were told of Unify's planned shift to emphasize software, "but we did not talk about the magnitude of the layoffs," including the cuts here in Palm Beach County. Some 46 development jobs already have been cut in Boca Raton, and sources say their work will be handled in Budapest, Hungary. The laid-off workers developed custom telephone systems for companies, sources close to the company said. The office's 206 remaining employees are at risk. Word is the office could be phased out and possibly shut down during the next 18 months, with a possible move to Switzerland, but that information could not be confirmed. Amy Martin, a Unify spokeswoman, would not provide employment numbers at the Boca Raton office. Nor would she confirm the recent layoff. She also would not affirm the Boca Raton office's continued presence. As part of Unify's global restructuring, "we have not made any decisions regarding any of our sites," she said. She did note, however, that several senior executives live in and around the Boca Raton area. And she said the company plans to grow its business in North America, indicating there could be future hiring. As for Palm Beach County's phone contract, Martin said the company had informed the county of its planned reorganization, "so it wasn't a surprise we hid from them by any stretch." By way of reassurance, Martin added: "We have a contract that clearly states our objectives and our goal is to overperform and exceed expectations." Kelly Smallridge, president of the Business Development Board of Palm Beach County, said neither the BDB, the state or the county were informed by Unify of the August layoffs. That's because the cutbacks are just shy of 50 employees, the number that triggers the state's requirement that companies make a public announcement. She said the BDB will contact Unify executives in Boca Raton to try to learn about the company's plans for Palm Beach County. "Siemens has had a very significant presence and a large campus in Boca Raton. From an economic development standpoint, it spoke loudly to our international clients looking at Palm Beach County as a site for relocation," Smallridge said. Indeed, in 2001 Siemens and its various divisions employed 1,800 people in Boca Raton. Palm Beach County took its time reviewing candidates for the telephone contract because the job is so important. The four phone providers each underwent a one-month test in a lab setting. After a year's review, Siemens came in first place and was the lowest bidder, Bordelon said. Once the system is installed, the county expects to save $2 million each year because it will no longer need to lease telephone circuits from AT&T. Instead, the county will rely on its own fiber optic network, Bordelon said. Unify isn't the only telecom company trimming costs through layoffs. Last month, Cisco announced plans to lay off up to 6,000 employees in the coming months, or about 8 percent of its global workforce. Alexandra Clough writes about the economy, real estate and the law. ___ (c)2014 The Palm Beach Post (West Palm Beach, Fla.) Visit The Palm Beach Post (West Palm Beach, Fla.) at www.palmbeachpost.com Distributed by MCT Information Services |