10% rate cut for renewal

[oldtimer45]

Ok, been contracting in this large insurance company for over 3 years, got offered a 3 month renewal on old terms, starting 3rd November.

However got an email today from my Agency "Conputer People" saying that from 1st Dec I would be transferring to the clients preferred supplier, and by the way, they were reducing rates across the board by 10%. So I get one month at the current rate, then new contracts negotiated from then with the new agency.

After the initial deep resentment and anger (client have refused all attempts for a rate increase in 3.5 years, apart from once), is this strictly legal?

This will have happened many times I know, what is the best way to deal with it? - I will certainly be looking around for other opportunities

[The Lone Gunman]

Ok, been contracting in this large insurance company for over 3 years, got offered a 3 month renewal on old terms, starting 3rd November.

However got an email today from my Agency "Conputer People" saying that from 1st Dec I would be transferring to the clients preferred supplier, and by the way, they were reducing rates across the board by 10%. So I get one month at the current rate, then new contracts negotiated from then with the new agency.

After the initial deep resentment and anger (client have refused all attempts for a rate increase in 3.5 years, apart from once), is this strictly legal?

This will have happened many times I know, what is the best way to deal with it? - I will certainly be looking around for other opportunities

You take it or you walk. Have you checked with your client that this is the reality?

[Unicorn]

Way forward

1. Check notice period under new terms
2. Carry on working
3. Look for another role at the rate you want
4. Get new role on rate required, until then go to 2
5. Leave ASAP and take 3 years experience with you

Job done.

[Lewis]

Ok, been contracting in this large insurance company for over 3 years, got offered a 3 month renewal on old terms, starting 3rd November.

However got an email today from my Agency "Conputer People" saying that from 1st Dec I would be transferring to the clients preferred supplier, and by the way, they were reducing rates across the board by 10%. So I get one month at the current rate, then new contracts negotiated from then with the new agency.

After the initial deep resentment and anger (client have refused all attempts for a rate increase in 3.5 years, apart from once), is this strictly legal?

This will have happened many times I know, what is the best way to deal with it? - I will certainly be looking around for other opportunities

Sounds to me they are giving notice to the extension as soon as it starts (I assume you have a 1 months notice). So it is really only a 1 month extension. You are then being offered a further extension at a lower rate. Which they can do if they want.

We had a similar thing here recently. Take a x% cut in one month or leave. It is happening a lot in the current market. From what I hear there is not much work out there so I would probably just accept it if I was you (assuming you are happy to stay) - and continue to look if you want.

[expat]

1. Check notice period under new terms
2. Carry on working
3. Look for another role at the rate you want
4. Get new role on rate required, until then go to 2
5. Leave ASAP and take 3 years experience with you

Job done.

If you are able to give notice.

[mailric]

standard procedures for companies struggling with costs...

HBOS and Barclays both offered 10% cut or have your notice options.

[expat]

standard procedures for companies struggling with costs...

HBOS and Barclays both offered 10% cut or have your notice options.

Has anyone ever tried OK 10% cut, with 10% cut in hours?

I mean, I know you can punish them with 10% skiving, but actually spend more time at home, e.g. 1/2 day per week?

[oldtimer45]

Well I am thinking of negotiating working from home one day a week, so could be worth trying

[BolshieBastard]

You've got to be pragmatic especially in these crunch times. 90% of something is better than 100% of nothing.

OK is it legal? Sure it is. You either accept it or not.

As for someone's suggestion of asking \ telling the client rather than a 10% rate cut with a 10% cut in hours, isnt that a double cut in income?

I've never known a client agree to a 10% cut in hours at the same rate. When they want a 10% or whatever cut in rate, they want a cut in rate not hours.

[BrilloPad]

I would take the cut. Unless clientco are reading this thread and using it to decide about a rate cut - in which case I walk.