"Omnicom Enforces Production Contracts" is the title of the article found in the March 9th AdWeek. I won't bore you with the entire story (which you can read for yourself at adweek.com) but suffice it to say that Omnicom has added yet another corporate mandate to their ever-growing list of policies regarding vendors.
The bottom line is that Omnicom has announced that it is now enforcing a strict policy of not paying their vendors until their clients pay them. Does this policy affect "temporary employees" who receive payroll checks? I don't know, but I wouldn't be surprised to find out it does considering the current economic situation. This policy looks like it will certainly affect freelance illustrators, photographers, conceptors, printers, premiums vendors and anyone else submitting an invoice/PO.
As you may, or may not know, Omnicom owns Colangelo Synergy Marketing, Alcone Marketing Group and Tracy Locke.
Since many of these companies are now getting their freelancers through staffing agencies, I hope this will not affect that company's policy on payment. To be determined....
ReplyDeleteAs far as I know none of these Omnicom agencies use placement agencies - unless this is a new development that started within the past 4 months. Like I mentioned, I don't believe that this policy will affect temp employees. But if placement agencies were being used then that would be a good thing. From my experience, placement agencies pay temp employees within a week of submitting a time sheet. The placement agencies would then have to wait for the promotional agencies to pay them. This has been SOP for as long as I've been dealing with placement agencies.
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