UBS Rate Cut

[financeguy]

I have been contacted today by Hays who run the contract account at UBS to inform me they are implementing a global 10% rate cut for all contractors. It looks like they may have staggered the news slightly as after speaking to several fellow contractors on site they have found out at various points in the last week or so and have different rate cut effective dates accordingly (4 weeks notice of cut).

Apparently this only affects contractors who count as headcount and not anyone that work through consultancy intermediaries.

Spoke to Senior MD who said no one had any hope of exemptions.

[PurpleGorilla]

Merry Christmas!

[cojak]

Welcome to the happy world of Finance contracting.

[BlasterBates]

This happens quite regularly at UBS and in fact most of the big banks. They're just following the lead from RBS and Barclays.

If you refuse they will probably let you go, unless you have a very important role. Basically if you don't want to accept you need to find a new contract.

It would be very unusual for a contractor to be employed via a consulting company such as Accenture, almost certainly not in development, generally they do business analysis, re-organisation etc and there's a lot less of them.

[kaiser78]

Depends on what rate you are on at the moment as well - a 10% reduction could still be >= market rate and so would it be such a loss ?

[northernladuk]

Have a read of these...

IT contractor lawyer attacks rate-cutting banks :: Contractor UK

egos IR35 cases index

UBS
2008
10%
‘I decided to stay as it was the middle of the global financial crisis, so wasn't wise to be out of contract!’
UBS – again!
Aug 2011
10%
‘I decided to terminate’
UBS – again!
Dec 2014
10%
‘ubs has implemented a rate cut -10% for all direct contractors effective dec 1st 2014’

[financeguy]

I'm not going to do anything rash. Done my research over the weekend and my cut rate is still at least market I reckon.

[BolshieBastard]

What has rate cut being >= market rate got to do with it? Its a rate cut ie doing the same for less. Stop selling fellow contractors out.

[Bunk]

What has rate cut being >= market rate got to do with it? Its a rate cut ie doing the same for less. Stop selling fellow contractors out.

It's pretty obvious isn't? If the new rate is still above market rate then he's probably not going to get more by leaving. Seems pretty reasonable for them to cut rates if they've realised they're paying over the odds.

[Jeebo72]

Spoke to Senior MD who said no one had any hope of exemptions.

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.