So it seems the Office for National Statistics are the latest public sector body to issue take it or leave it deals to their doers. Just received this from the pimp:
I am writing to you in regard to an ONS communication that we received last night. As you are aware, the Government as a whole has been looking at ways of reducing expenditure across its contractual estate in what are ongoing tough economic times for all. The process of looking for efficiencies and savings has not subsided and as such ONS have undertaken a review to make further savings from the contractor base. We have been informed by ONS that they are now looking to reduce the rate they pay each contractor across the estate. This decision has been ratified by the Director General and board of Directors of ONS and as such it has to been agreed that all contractor rates be cut with no scope for individual negotiations to ensure everyone is treated the same.
Therefore we have been advised by ONS that all contractor day rates are to be reduced by a margin of 6% starting on 1st April 2014. If a contractor does not agree to this, their contract will be terminated. We have been advised by ONS that this level of cut is being looked at across the whole ONS contractual estate and without this being invoked, ONS would have to look at other more drastic measures to achieve the savings required (these may include stopping projects and terminating contractors).
There are a number of ways in which ONS will look to reduce the impact of this by reviewing the length of contracts they offer and the termination clause. Historically ONS have offered 3 to 6 month contracts which with a 20 day termination clause. Therefore, ONS is considering looking at 9-12 months contracts (where business requirements demand that length of contract) and the possibility of increasing the termination periods to 30 days as recognition of the contractor’s acceptance of this rate reduction. ONS will also consider providing longer termination periods for contractors should they wish to reduce their daily rate by more than 6% (e.g. possibility of 35 days termination for a 7% reduction, 40 days for 8% reduction etc.).
ONS understands the risk that contractors may look to leave the organisation but it is a risk they have confirmed they are prepared to accept when faced with the budget constraints they operate under. It is appreciated that this news is likely to be greeted with some degree of surprise from the contracting community, and it is a decision that ONS has not taken lightly. We have been advised by ONS that acceptance of the proposed rate reduction needs to be agreed and communicated to them by noon on Friday 7th March 2014.
I would therefore be grateful if you can confirm your acceptance of the proposed margin reduction via email no later than Wednesday 5th March 2014.
Many thanks for your cooperation and understanding on this matter.
Therefore we have been advised by ONS that all contractor day rates are to be reduced by a margin of 6% starting on 1st April 2014. If a contractor does not agree to this, their contract will be terminated. We have been advised by ONS that this level of cut is being looked at across the whole ONS contractual estate and without this being invoked, ONS would have to look at other more drastic measures to achieve the savings required (these may include stopping projects and terminating contractors).
There are a number of ways in which ONS will look to reduce the impact of this by reviewing the length of contracts they offer and the termination clause. Historically ONS have offered 3 to 6 month contracts which with a 20 day termination clause. Therefore, ONS is considering looking at 9-12 months contracts (where business requirements demand that length of contract) and the possibility of increasing the termination periods to 30 days as recognition of the contractor’s acceptance of this rate reduction. ONS will also consider providing longer termination periods for contractors should they wish to reduce their daily rate by more than 6% (e.g. possibility of 35 days termination for a 7% reduction, 40 days for 8% reduction etc.).
ONS understands the risk that contractors may look to leave the organisation but it is a risk they have confirmed they are prepared to accept when faced with the budget constraints they operate under. It is appreciated that this news is likely to be greeted with some degree of surprise from the contracting community, and it is a decision that ONS has not taken lightly. We have been advised by ONS that acceptance of the proposed rate reduction needs to be agreed and communicated to them by noon on Friday 7th March 2014.
I would therefore be grateful if you can confirm your acceptance of the proposed margin reduction via email no later than Wednesday 5th March 2014.
Many thanks for your cooperation and understanding on this matter.
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