JP MOrgan to announce 15% rate cut

[d000hg]

If you are on £400 and don't want to take a 15% cut, give it to me

[Bumfluff]

I cant believe how lucky I've been on my rate, I was above market rate when I started gig and even offered to take a rate cut on my renewal last week, but they said no , its the bank that has not been that hard hit.

[AtW]

clients should not be surprised if contractors phone in sick for three weeks in order to escape their notice period.

Looks like they are prepared to take this bet and I think in this case (unlike with subprime betting) they might be correct.

I agree that they should be able to implement new rates at the end of the contract rather than terminate it on this basis - unless the company went bust or there are other valid reasons for contract termination, however if you were making good rate in good times (which were fairly long) you should not be suprised you get lower rate in bad times, effectively this is to be expected really.

[EternalOptimist]

I am interested to hear Dodgys take on this

[TheBigYinJames]

It would probably making an interesting anti-IR35 pointer too if you took a rate-cut for performing the same contractual duties.

It's a business to business model, if they demand your business lowers its prices or else they'll stop using you, thats business. I would argue the other way - the fact that a contractor expects ROI increases every year in their rates points to IR35.

[AtW]

It's a business to business model, if they demand your business lowers its prices or else they'll stop using you

That should happen at the end of contract as agreed. It would be nice if it was possible to agree 12 month deposit at one rate, but then if rates peaked demand bank gives you new higher rate before 12 months are up.

Perhaps rate change situation should be part of all contracts so that it is clear what's going to happen in this case. Say, maybe contracts should say - if one of the parties comes up with new rate proposal (and this includes contractot as well as business that uses him), then if no agreement on that can be reached X weeks notice is given. So that it works both ways and this is the get out clause for both sides, not just for one at it currently seems to be the case.

[Bagpuss]

Apparently during the last recession (2001-2003) JP only did a single cut - for 10%.

However, there were othr banks who cut by more and kept cutting.

The last recession was in the early 1990s.

PS IMHO You Can't expect rates to remain constant in a recession.

[AlfredJPruffock]

If this bank is receiving any form of bailout or support from the Government I would demand a 15 per cent increase given so many of the top bamkers have creamed money from the baliout program.

[DodgyAgent]

My rates fluctuate, sometimes I'm up sometimes I'm down. That's life. Expecting to earn more and more with each passing year might be OK for certain very niche people (and permies seem to desire this too) but most of us out here ride the waves of the market, and that means sometimes you'll be earning less than you were before, sometimes more. Nothign wrong with it, and I resent the seafoodnugget's implication that you're all washed up just because you have to work for 10% less than last year.

A man (or woman?? you never know on this site) with a logical perspective on life.

[BrilloPad]

That's a pessimistic view. A 15% cut on a rate £500 leaves you on £425 which is hardly a bad rate, especially if you got £500 a year ago when things were relatively peachy.

Have heard it said by a few agents that JP's rate card was a long way below market rates.