10% rate cut again!

[d000hg]

Same old story the world over. Get the Bob offshores in for next to nothing. Save a fortune.

In what world is £350/day "next to nothing"?

[Peoplesoft bloke]

In what world is £350/day "next to nothing"?

In the world where "Bob" sees very little of it - i.e. reality.

[psychocandy]

In the world where "Bob" sees very little of it - i.e. reality.

Thats what I meant. If IT company is charging £350, Bob on the ground is possibly getting £100 of it.

Of course, original company is happy because they're paying £350 instead of £500 for a proper contractor but getting a useless Bob whos doing it for £100.

Unfortunately, my current client is the world worst for this. All they can see is cost savings.

[psychocandy]

Speak to your boss, find out how much they are paying the agency and get that margin down to 7-10% if it's above that.

If that doesn't work then tell the boss you will consider the offer of an extension and start looking for a new contract. If you get a better offer then hand in your notice or turn down the extension.

Sod them, if they cut rates then they are going to lose people.



Top tip: don't opt out next time and this won't be enforceable.....

If you're opted in, is there any time limit enforceable? I thought there was still some....

[TheFaQQer]

If you're opted in, is there any time limit enforceable? I thought there was still some....

Yes, but it's not 6 months. IIRC, it's 8 weeks from the end or 14 weeks from the start, whichever is later.

[russell]

Last month my contract rate was cut by 10%.

My boss wants to extend my contract this month and wants me to work on a new 3 or 6 mth project.

I asked him if I could increase my rate and he told me it was difficult because:

1) senior management wants to cut contractors and hire a IT company like InfoSys, who will supply Indian staff at a charge out rate of £350 a day which is much lower than ours.

2) In addition to this, rumours of a second 10% cut in contractors rates have been floating around the city and in Canary Wharf.

Faced with this issue, I'm looking for a new contract because my rate keeps on falling and falling and I can not tolerate another 10% rate cut. Loyality gets you nowhere!

Question, what should I do apart from look for a new contract?

Should I make my rec agency absorb second 10% rate cut if it happens?

Or

Should I wait till it happens and then walkout from the job by not agreeing with the 10% rate cut?

Also, my agency has a 6 mth clause that I can not work at the same company again, unless with via them.

Any tips or help?

I would wait till they actually apply the second cut, then say no and threaten to walk. They will either change their mind or fire your sorry ass.

[northernladuk]

I would wait till they actually apply the second cut, then say no and threaten to walk. They will either change their mind or fire your sorry ass.

<cough> Pardon???

[lukemg]

As discussed-
1. No point just turning down flat, express disappointment but dont give ultimatums unless you are certain you will walk.
2. Immediately start looking, nice to walk away under these circumstances (last minute if poss)
3. Nothing else turns up in time, take the cut and keep looking. I personally would maintain work level but you can forget extras - hours, calls out of hours etc. Keeps the revenue coming though.
4. If I found something else I would have no qualms walking off mid contract, which I would not do if treated fairly.

[d000hg]

In the world where "Bob" sees very little of it - i.e. reality.

Irrelevant... if bobs are now going for £300+, they are not so much cheaper anymore. UK people will take £350 roles - if I was already living in London I'd take £350 (though obviously wouldn't move there for that).

[russell]

<cough> Pardon???

Sorry finger slipped.

terminate your contract with immediate effect.