Shell rate cut & imposing contract clauses on Clients

[xux42]

Shell have just announced an across the board cut.
As I may well end up at an Investment Bank soon this is of personal interest.

I'm guessing that an exemption clause would be rejected, at least for a 1st time IB contract. It might be possible for renewal / subsequent contracts though and I wondered what views anyone might have on how a Client might react if it applied an across the board cut and was then told 'on yer bike, I'm exempt'.

As a business they should just take it on the chin but I've heard rumours that some senior folk at IBs can be sometimes be less than objective..?
I'm sure its just talk though. I bet they're all smashing people in real life, just as happy to take it as deal it out.

[jamesbrown]

Even if such a clause were possible, it wouldn't be worth the paper, much like a notice period. It's easy to terminate contracts or offer no work, and to procure new services based on different conditions.

[northernladuk]

How are you exempt from an across the board cut? It doesn't make sense.

Oh.. Are you talking about putting one in future contracts? If that is what your are suggesting then ROFL.

[BlasterBates]

Basically the bank will offer you a contract with a maximum 1 month notice. When they give you a rate cut they simply give you notice and offer you a new contract on a take it or leave it basis. Some banks have immediate termination. Regardless, once you've been terminated you will have a few days to respond.

You are free to move on if they give you a rate cut.

[xux42]

Oh.. Are you talking about putting one in future contracts? If that is what your are suggesting then ROFL.

Jeebo72 / 1st December 2014:
"Not true, been through it so many times. Most will accept, some will negotiate better deals, some will refuse. I’ve refused every time, and never been shunted. I know a current PM there who has no rate reductions included in his contract as he was so fed up with it at various IBs."

However, the general drift from these responses is much as expected, ie IBs expect to have, and are careful to maintain, the upper hand in negotiations and any 'victory' over one would be short lived and pyrrhic.

Cheers for quick responses as always.

[northernladuk]

Jeebo72 / 1st December 2014:
"Not true, been through it so many times. Most will accept, some will negotiate better deals, some will refuse. I’ve refused every time, and never been shunted. I know a current PM there who has no rate reductions included in his contract as he was so fed up with it at various IBs."

However, the general drift from these responses is much as expected, ie IBs expect to have, and are careful to maintain, the upper hand in negotiations and any 'victory' over one would be short lived and pyrrhic.

Cheers for quick responses as always.

It's Jeebo. Take it with a pinch of salt. Not sure the context of the comment but Barclay's across the board were pretty much that. Have a look at this site listing all other organisations that have done it

http://www.egos.co.uk/contract-breakers.htm