The cut was imposed across TPF’s workforce in September 2009, prior to its fall into administration and the subsequent pre-pack sale of the print management business to BMC.

According to staff at the firm’s Guildford site, they were informed in the summer the 10% cut would not be reversed, despite a return to profit for the business.

In a statement, BMC said: "The 10% pay cut was imposed by TPF in September 2009 and prior to our acquisition of its BPO business and certain assets from the joint administrators.

"It is therfore a legacy issue that we have inherited from TPF on which we are unable to comment any further at this time."

BMC, which is the umbrella brand for the office2office-owned AccessPlus and TPF Group businesses, also confirmed that it was in consultation with staff at the former TPF warehouse in Irthlingborough.

An internal communication from BMC managing director Catherine Burke, seen by PrintWeek, said the company had opted to close its Irthlingborough operation and move warehouse stock to its remaining locations.

It said: "Over the coming weeks, the warehousing function will be combined with the wider group operation, allowing us to combine both print and office supplies.

"This will remove duplication, lower costs and enable us to continue to compete in the marketplace, while maintaining excellent service to our customers. Unfortunately, this has resulted in roles being made redundant."

BMC declined to comment on the number of job losses, saying: "the consultation processes are ongoing and it would be inappropriate to comment at this time."

In August, Office2office (O2O) posted a 12.2% increase in revenues to £107.7m for the first half of 2010. Sales were up from £96m in 2009 for the six months ending June 2010, although profit before tax dropped from £4.5m to £3.1m.

O2O cited a drop in customers’ "non-core expenditure" for a reduction in its gross margin percentage from 31% to 28.7%.
The company recorded restructuring costs of £2.6m during the period, which in part arose from its acquisition of TPF in February.

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BMC TIMELINE
November 2010 BMC confirms that 10% pay cut activated by TPF will not be reversed
August 2010 Office2office unveils Banner Managed Communication (BMC) brand for its AccessPlus and TPF Group businesses
February 2010 TPF and DSR Group placed in administration with KPMG with the trade and assets of the print management division sold to Office2office
September 2009 10% pay cut imposed on TPF staff