Push back on a rate cut

**Fred Bloggs** · 29 December 2009, 10:51

Take the cut and find another job in the meantime. I'd be bored witless after 2.5 years anyway.

**swamp** · 29 December 2009, 11:04

Tell them to get lost. They will back down. £20 a day is over £4,000 gross per annum. You are being fscked over by £4K, and if you accept it you will regret it for a very long time.

Ask the client to hire you direct, or through another agency. Did you opt out of the Agency Regs? Did you opt out before you started working for the client?

**speedo** · 29 December 2009, 11:04

I had a similar repsonse from Spring when my contract renewal came up a few months back....i investigated this further and found out the following:
1. My line manager was ok and agreed to my rate increase,
2. HR had to initiate this with my line manager, but didnt as they refused the rate increase with Spring - supposedly!

Basically i had to accept the contract at the same rate.... didnt really have much choice as i never had anything else on the go. Which is my suggestion to you- take the contract and keep looking in the meantime.

I have learnt my lesson - as contracting indivduals we should look after ourselves and if something comes around which is better for whatever reason then there is no reason why we shouldnt move on, and serve notice.

**Eggnchips** · 29 December 2009, 11:07

Thanks for the replies, it has been convenient with regards to location but I am sick to death of Spring's high handed attitude.

**singhr** · 29 December 2009, 11:29

Tell the agent you have a better offer, closer to home through a personal contact and it's virtually in the bag but are prepared to stay at current client out of loyalty if the rate is the same. Also remind him that 10% of something is worth more than 20% of nothing. Good luck

**BrilloPad** · 29 December 2009, 11:42

Originally posted by Eggnchips View Post

Good Morning, this is my first post so bear with me. I have been in my current contract for 2.5 years, in that time despite taking on more teams I have had one small rate increase. Current contract ends on Dec31st and I have been asked to extend to the end of March (all of my previous extensions have been 6 months or more). The agency want me to take a 20 quid a day cut and are basically telling me to get lost if I won't accept it. I do have a local HR contact who tells me that this is not being forced on them by the client so it sounds like the agency wanting to up their cut. They won't give me details on margins and won't offer any other reasons. Has anyone else had this problem with Spring ?

Do clientco want to keep you or are they desperate to keep you?

**northernladuk** · 29 December 2009, 11:43

I presume you are not claiming travelling expenses anymore due to the 2 year rule? Maybe I should say I hope you are not.

Even though you are not might be worth pointing out that now you are over 2 years you cannot claim travelling expenses anymore and therefore effectively took a cut last renewal. Helps with the bargaining possibly.

**speedo** · 29 December 2009, 14:37

Going back to my experience with Spring - they were an absolute shambles!
1. They gave me the impression they hadnt contacted my client's HR with a request to increase - i got a sly email from Spring stating that because of the current climate they expect the client to reject any rate increases.
That statement pretty much gave it away that they hadnt even bothered contacting the client HR representitive. Once i started to kick up a fuss with both client and agent, it was only then they actually talked or i was led to beleive they talked.... to be honest i had lost faith with Spring by then!

As a seperate note - Spring do have some guidelines on rate increases and if you have a creditable reason on a rate increase then they can take a hit on their margins. Another contractor at my place did not get a rate increase for 2 years... but then he asked the question especially as he was fundamental to the projects going on ..... and he managed to sqeeze Spring's margin by about £15-£20 per day, unfortunately working in the public sector the rates are much less and HR are just not with the plot.
Perhaps you want to go down this route and build your case with your client and see if you can turn the screw on Spring!

Good Luck.... the only good thing about Spring is there online timsheet and self bill... apart from that they are naff!!!

**BolshieBastard** · 29 December 2009, 16:20

Tell spring to **** off as you know they are trying it on. Tell them no rate cut or you'll walk. But be prepared to walk if they call your bluff.

Push back on a rate cut