Public sector take it or leave it rate cuts are back, then

[d000hg]

No it's not! You shouldn't part quote really when it's obvious the first part of the second sentence is helpful to the point of the first. If you cut the notice to zero, it enables you to be more responsive when the next opportunity comes up. As for your first sentence rate increases are acceptable when the economy is in a period of inflation. That is a natural element of the economy and business.

I didn't make any comment about the notice period, only about the nonsensical attitude that they wish to lower rates so they would be happy to pay the same rate for less work. The whole point is they want to pay less for the work being done, not pay less and get less done.

[lukemg]

My view on this is clear - I do not agree with rate changes before a contract end-date.
Once the current contract is coming to an end, then it is perfectly fair to discuss rate changes, either way.
So - my reaction is clear, I would consider my own circumstances, location, rate, other options and stay if I think it would be the best choice for me, forget trying to make a point etc I have no interest in that.
BUT, while staying professional, I would be less inclinced to kick in all the extra stuff I consider normal, attending the odd weekend telcon, putting the odd long day in at critical times AND I would start looking (which I never do) and I would be off with no qualms if I got a better/comparable off (which I never do).
If that is worth 6% to them, go for it.

[craig1]

I don't get it... people want to act like they're in proper business for themselves, mainly to reduce their tax bill while earning more than employees do, yet when their client treats them like a supplier they don't like it. There have been plenty of news stories about big companies screwing over small ones, demanding abysmal payment terms and permanent "discounts" against invoices on existing contracts. I know more than a few big companies that have 90+ day payment terms for small suppliers.

The choice is fairly simple in my mind:

1. Walk.
2. Take the cut
3. Negotiate but be prepared to choose 1 or 2 if they play hardball.

Bear in mind that most public sector organisations that have hard rate bands for contractors often have hidden "incentive" rates that they can give to exceptional staff, if you're good enough you can ask politely about that.

One example of how badly some suppliers are treated, there was one company that I worked for as a contractor, I had weekly bill/pay terms with my agency, they had 90 day from end-of-month terms (so essentially up to 4 months) with the client and they were on a 4% fixed open-book margin. The client then sent them a letter stating that due to their difficulties in paying on time they intended to move to six monthly guaranteed payment terms to "help" suppliers manage their cash flow forecasts. How the agency stayed in business still surprises me to this day.

[kingcook]

I'm in public sector (not ONS) and haven't heard anything, yet...

[Sausage Surprise]

Waiting with baited breath for evidence of that; there are five pimps at play at our place and my pimp is the only whorehouse to send out a message so far.

Bated...

[perplexed]

Had a phone call about ONS a few weeks ago. Rate would have meant income was £400 a week down on the income my company receives at the moment, so avoided it. Not happy where I am, but I just put on a false smile and think of the money. The rationale for the rate being low was the fact the role goes through a chain of companies, all obviously taking their cut.

Will be interesting to see if a proposed extension where I am now contains the same kind of rate cut. Slightly different scenario though.

[7specialgems]

Bit of an update on this one.

It seems that the majority of the contractor's shared towards the agencies on the cut has been "this is between you and the client, it is in both our interests that you accept this and then negotiate with me later".

One pimp has agreed to it and the others appear to be following suit.

A minority have flounced and a minority are out of contract at the end of March, so are now looking around for something new.

[kingcook]

I would therefore be grateful if you can confirm your acceptance of the proposed margin reduction via email no later than Wednesday 5th March 2014.

Email to agent: "My proposal is that you take a closer look at your relationship with the client. If you terminated my contract due to my unwillingness to reduce my rate by 6%, how long would it take you to find a replacement? Would they be upto the same speed as me from day 1? What if you couldn't find a replacement for say 2 months? Would all of this have any negative impact on your well earned status of being on the client's PSL? Is that worth 6%?"

[kingcook]

Interesting...

Contract Breakers

[DaveB]

Interesting...

Contract Breakers

Not updated since June 2012....