5 days into contract, rate cut!

[wonderboy]

I am 5 days into a contract at a massive bank. Apparently the bank now wants to impose a 10% rate cut on contractors in certain areas in the bank.

Is this normal? First instinct is to tell them where to go. Does anyone have any experience of this?

[Scruff]

Barclays and RBS do this with regularity

[wonderboy]

And are they just calling your bluff?

[stek]

Barclays and RBS do this with regularity

As have Lloyds and the Co-op Bank....

[SussexSeagull]

As ever depends if you can do better elsewhere. What was demand like when you were looking?

[wonderboy]

Demand outstrips supply in my sector (JavaScript). Mind you this rate is significantly better than anything else I was offered. It's more the principle of bait and switch that I don't like.

[northernladuk]

We did mention Barclays in a thread only this week. Might be some interesting reading here.

http://forums.contractoruk.com/busin...ys-wealth.html

[dty]

There isn't a universal cut at Barclays. Or if there is they've decided not to mention it to me as I only have 4 days left. But no mutterings around me.

[perplexed]

Maybe I'm stupid, but unless you're direct, how can Barclays dictate a 10% on your rate defined within the contract between you and an agency? If Barclays want to renegotiate their deals with agencies, that's their business; agency would obviously try to then force the cut on you... you can then choose to negotiate ( agency swallowing cut - wholly or partially - out of their margin, etc ) but I'm intrigued as to how Barclays et al seem to believe their desire to cut costs is magically your problem, that you should bend over when your contract isn't with them...

[northernladuk]

I really don't think agents are into swallowing any costs when they are on 2 to 3% margins. There has to be a limit where it just isn't worth it for them.

Remember the agents cut IS being reduced as well. If the bank is paying less the agents margin is also less.