Rate cut without waiting for renewal

**denver2k** · 10 March 2009, 10:12

If you feel these cuts are not across the board and varies from contractor by contractor then I would speak to agent and would try to get as max as possible.

**pmeswani** · 10 March 2009, 10:26

Originally posted by xux42 View Post

Just received this email.

"Dear Contractor,

Further to the announcement of a rate reduction within ******* Group. The difficult decision has been taken to apply a rate reduction of 10%.
The rate reduction will take effect from Sunday 5th April 2009. Amended contracts are being created for all contractors and will be sent to you in due course. There is a significant amount of contracts to be re-raised however we anticipate you will receive this no later than Monday 16th March 2009. Please be aware that all pay related discussions should be held with your contractual partner and not a ******* Manager.
Contracts need to be returned to the appropriate party by close of business on Friday 27th March, We hope you appreciate the business decision that drives this and that you will accept the new terms being offered. If we have not received your contract by this date we will accept that you are providing 2 weeks notice of your intention to terminate your current contract."

So a blanket cut for everybody? - err no. actually a friend showed me a different email confirming that his rate will be maintained. As for myself, last week I was renewed for 3 months from 14th March at my current rate. I suspect I shouldn't have received this mail - the client is depending on me working 50hr weeks to meet a hard deadline.
But supposing I am caught by this - any suggestions? I'm wondering whether to shrug and say I'm going back to the relative sanity of 37.5hr weeks and they will have to find some other way to meet their deadline.
Or should I cave? I should I negotiate a smaller cut? The really annoying thing is that I worked nearly 2 years on a lower rate and only asked for, and got, a 9% higher rate at the end of September - which I put in writing as "Fixed until the end of 2009". Unfortunately they only verbally agreed to the fix. Under the law of contract thats still binding, but its irrelevant as I am certainly not going down the litigation path.
All observations welcome!

I would tell the agency that you are going to walk and that you are not going to accept the terms and conditions based on new information received from your colleagues (however you may want to omit the bit about the information received from your colleagues). Then tell the client that you are in dispute with the agency and that you are going to leave. If the client is desparate to keep you on, then they will do everything to make sure you stay.

**nevergoingtopay** · 10 March 2009, 10:36

If the client needs you that much, put your rate up by 10%!

Only you know if they need to keep you around, sounds like they do if you are being expected to work 50 hours a week!

Otherwise look for another contract and leave when you find it.

Don't let them bully you....

**BrilloPad** · 10 March 2009, 11:53

Originally posted by xux42 View Post

So a blanket cut for everybody? - err no. actually a friend showed me a different email confirming that his rate will be maintained.

Sounds like they dont want to keep you. Personally I would agree to new rate. If you argue start looking for a new gig.

**deckster** · 10 March 2009, 12:10

Originally posted by xux42 View Post

I suspect I shouldn't have received this mail - the client is depending on me working 50hr weeks to meet a hard deadline.

Correction: your PM is depending on you working 50hr weeks. In my experience, these group-wide rate cuts come from way above the project level and the PM will have little or no say in it. By all means play the "I'm crucial to you" line, but a) be prepared to have your bluff called, and b) don't forget - particularly at the moment - n-10% is a lot better than zero.

**xux42** · 10 March 2009, 12:15

Originally posted by deckster View Post

Correction: your PM is depending on you working 50hr weeks. In my experience, these group-wide rate cuts come from way above the project level and the PM will have little or no say in it. By all means play the "I'm crucial to you" line, but a) be prepared to have your bluff called, and b) don't forget - particularly at the moment - n-10% is a lot better than zero.

How about just dropping back to 37.5hrs and dropping them in it if they insist on the cut?

**BrianSnail** · 10 March 2009, 12:25

If you're on a daily rate accept the 10% cut on the condition you go onto an hourly rate.

10% drop + >10 more hours = BOOMED!

**d000hg** · 10 March 2009, 12:30

Originally posted by xux42 View Post

How about just dropping back to 37.5hrs and dropping them in it if they insist on the cut?

Yes, don't say anything, just stop working overtime. When you get asked, say management acted unprofessionally and forced a rate cut mid-contract, and you don't see why you should slog your gut out.

**BolshieBastard** · 10 March 2009, 22:21

Who's instigating this rate cut, the client or the agent?

From reading the email, it seems the agent is trying to increase their margin on the back of cutting contractor rates, hence the 'dont discuss with ***** managers! (That's the way I read it.)

I'd seek an urgent meeting with the client and ask them what they know about this. If they say they dont know anything tell them what the agent is trying to do and drop in a few comments about the tight deadline and 50 hour weeks you're doing to achieve it.

Rate cut without waiting for renewal