News: Axelisys’ Official Contingency Statement
by Ethar Alali, Founder, Managing Director
As things stand, on the 29th March 2019 the United Kingdom will cease to be a member of the European Union. A huge constitutional change impacting the lives of every British & EU National and business inside the United Kingdom and every UK citizen based in Europe. Our colleagues, suppliers, friends, neighbours and family.
Given the proximity of leaving day, the lack of agreement between the UK and the EU and our mix of UK, EU and international workers, it would be both remiss and negligent of us to not prepare for every eventuality. Including actioning effective contingency. Protecting workers is a central tenet of any sustainable business and responsible, dutiful employer. Even if the wider business environment ceases to be as protective.
A Resilient Enterprise
From its inception in 2011, Axelisys was designed to cope with significant economic shock. A conscious decision I, as founder, made after the financial crisis of 2008. As director of Axelisys, it is my responsibility to ensure the security of the company, our clients’ resources and the well-being of workers.
After notifying the European Union of its intent to leave, the UK has had 2 years to prepare for a potential No Deal scenario. To that end, we have been planning the company’s contingencies for almost all of that time. Consulting experts, evaluating options and looking at potential impacts and opportunities for the company and its subsidiaries.
We have carefully studied both the UK and EU’s Preparatory Notices. The UK’s exist from the European Union has huge implications on UK businesses large and small in Britain’s future. No business is excepted. Any outcome of negotiations with the European Union results in reduced business in core markets. Rippling through the UK Plc and affecting customers’ ability to buy goods and procure services. Tenders and contracts within the public sector of EU member states, EEA and ETFA nations and through treaties with 3rd countries under EU Free Trade Treaties, become inaccessible. In turn, potentially affecting UK business’ global competitiveness and our own ability to maintain desensitised agility.
As part of that contingency, we have taken the step of creating a new entity within the European Union. The registration of the EU based company is now complete and will shortly begin trading. Securing our future and the jobs of our EU based workers, while also maintaining similar levels of UK workers. Over time, the organisation will naturally find a new equilibrium across the two entities and we do not expect that this will be our final form.
Workforce
This week, I wrote to every one of our workers to notify them of our intent to split the company. Moving a large proportion of our service division to the continent. Allowing us to maintain client relationships, access to the European Union, and remain competitive with EU markets and Canadian contracts obtained through CETA. It also maintains and enhances access to FinTech clients who themselves have transferred operations inside the EU. This parallel structure allows the homogenisation of operations across our companies, while maintaining existing UK client commitments.
Everyone on our team is a valued member. Most I chose personally. Every company is made by its people and we are no exception. I do not want to lose any member of our workforce, nor do I want to risk putting anyone through a dehumanising process that ultimately risks any worker’s right to remain or work with us. Period. Should that happen and domestic workers must leave the United Kingdom, they have access to our EU entity to continue to work with us until they get back on their feet.
A Time for Courage
Of course, as founder I am aware that businesses have been shirked and accused of scaremongering for letting their staff and public know about their plans should the worst happen. This sort of planning is an obligation of the Company’s Act. Any board not conducting such activity is guilty of breaking the law. No company nor director should be chastised for upholding and carrying out their legal obligations under the Company’s Act.
Businesses should not be made to feel afraid to tell their workers and wider communities the truth. Nor should they be made to feel ashamed to do so. This honesty provides workers and their families with time to plan and build some resilience. To neglect to do so risks exposing their workers to a an unmitigated shock to their finances, which potentially cannot be absorbed by workers in some sectors. Given the size of the effects, workers should also be fearful of companies who say nothing!
As an extremely agile organisation, our technological infrastructure already supports such separation. There is no requirement for a significant technological transformation programme and crucially, the parallel company structure keep sour people and even makes it easier to interact with citizens on the continent and in 3rd countries.
The business is healthy and I am confident our mitigating actions allow us to continue without significant disruption, while also maintaining and growing access to lucrative markets and essential workers, skills and expertise. In the unlikely event the UK chooses to remain part of the EU or the single market, the extra EU presence affords us an opportunity for global growth in any event. Commercially, that is a win-win, whatever happens.
Finally
I’d like to extend my sincerest thanks to the workforce for all their hard work and patience during this time. For some, this has been a traumatic period. Rest assured that we did this with them in mind. Even if others in our society refused to act. Axelisys takes the position that collaboration and cooperation is central to the success of any enterprise. We couldn’t have got where we are without them.
For us, we look forward to a safe, lucrative and bright future in a global market. I hope other business take a similar lead in introducing the risks and protections for workers to those that we have.
— Ethar Alali, Founder and Director, Axelisys Limited and Axelisys OÜ
