Received an email today...

**TheBigYinJames** · 3 July 2008, 13:30

Originally posted by youwhut View Post

Currently contracting through Hays for HBOS. Rates are to be reduced by 10% because of the """"""credit crunch""""".

Thoughts?

My thought is, "Not 'appy, and isn't it me who decides what my rate is to be?"

Surely they can only reduce rates after the date of your next extension? Or are they invoking the "take it or walk" approach?

**youwhut** · 3 July 2008, 13:34

The email is considered 4 weeks notice.

And yeah it is very much the "take it or walk" approach.

**TheBigYinJames** · 3 July 2008, 13:38

Originally posted by youwhut View Post

The email is considered 4 weeks notice.
And yeah it is very much the "take it or walk" approach.

Well that call is down to you. How long until your contract ended anyway? You could wait until then and then negotiate your rate back up again.

**Dow Jones** · 3 July 2008, 13:40

1st time contractor?

You are a contractor, subject to market forces. You don't set the rates, you can propose an increase and if that is accepted all well and good. Conversely, your client is entitled to 'propose' a reduction, if you don't accept, they are entitled to use the notice period to get rid of you.
I don't think you've been around long enough as you are under the impression that you can dictate your terms.

**TheBigYinJames** · 3 July 2008, 13:42

Originally posted by Dow Jones View Post

You are a contractor, subject to market forces. You don't set the rates, you can propose an increase and if that is accepted all well and good. Conversely, your client is entitled to 'propose' a reduction, if you don't accept, they are entitled to use the notice period to get rid of you.
I don't think you've been around long enough as you are under the impression that you can dictate your terms.

And because it is a market, the banks can only risk doing this because they know the market can afford it. In better times, they'd lose all their contractors, today at this time, they know they can get away with it. Same mechanism that allows us to negotiate our rate up in better times.

**chris79** · 3 July 2008, 13:49

Just accept it, get on with it, then consider your own options at all times during the remainder of the contract if the rate you are getting now isn't personally acceptable. Walking away to spite them will affect you more than them, unfortunate situation but that's the way it goes sometimes.

**youwhut** · 3 July 2008, 13:50

I signed a 3 month extension in April which concludes in Aug - rate reduction due on 10th Aug. Another extension is in the pipeline to take me to October.

The reason I was asking here is exactly because I have not "been around long enough". I was hoping the more seasoned contractors could offer some advice from the last "doom and gloom".

**TheBigYinJames** · 3 July 2008, 13:51

[QUOTE=youwhut;574482]I signed a 3 month extension in April which concludes on 4th Aug - rate reduction due on 10th Aug. Another extension is in the pipeline to take me to October.
[QUOTE]

Well is a 10% drop too much to bear? Compare with leaving and entering the dodgy market we have at the moment where you may not get anything for a while and not at the same rate anyway.

**youwhut** · 3 July 2008, 13:54

Yeah, I can take it.

It's great to have work taking me up until October.

Received an email today...