10% rate cut again!

[NoPaddle]

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?

[kingcook]

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

Boss?

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

If you're sure that the agency will be happy to supply you to the client and receive next to nothing in return, go ahead

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

Do a search, this has been asked in some previous "10% cut" type thread, but some good advice (IMO) was to do/say nothing after receiving the contract termination notice. Wait until the last few days when the agent and/or client are crapping their pants because they haven't had time to replace you.

[oscarose]

Last month my contract rate was cut by 10%.

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.

Welcome to the 21st century.

Did this come as a suprise to you?

[jmo21]

Boss?

do we really need to pounce on people when they say things like that?

ooo... this is a contractor forum, you can't say boss or job

sigh!

[BolshieBastard]

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?

Although another rate cut would be hard to swallow, would a 10% cut mean you'd stay at over £350 a day? If so, what's the beef given the current climate?

IMO, you be better making sure your contract extension has a termination clause so you can give a week's notice if you want to leave (then quote MOO so you can leave immediately if another role comes along).

Agents and client rarely suck up a rate cut so I dont think you'll get anywhere with the agent. Most contracts have a handcuff clause of about 6 months (PCG really should be testing this in the courts instead of sitting on the pious arses.)

[kingcook]

do we really need to pounce on people when they say things like that?

ooo... this is a contractor forum, you can't say boss or job

sigh!

Yes! We do!

[NotAllThere]

Boss is much less verbose than "hiring manager".

Tell your boss that he should give you a ring once the IT company has proved that £350 a day isn't value for money, when it takes twice as long to get anything done for half the quality, and you're locked into a contract for five years.

[ChimpMaster]

Boss is much less verbose than "hiring manager".

Tell your boss that he should give you a ring once the IT company has proved that £350 a day isn't value for money, when it takes twice as long to get anything done for half the quality, and you're locked into a contract for five years.

It won't work because management's pockets are being lined with bonus payments depending on how much they can reduce consultant rates. This was the case at one of my prior engagements, where offshoring was the objective and management were going at contractors blindly with an axe - without a care in the world, so long as they got their bonus.

[psychocandy]

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

Realise down the line that they're completely useless and lose loads more money because customers are peed off with the crap service...

[Wanderer]

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?

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.

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?

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