JP MOrgan to announce 15% rate cut

[DodgyAgent]

I am interested to hear Dodgys take on this

EO thank you for being interested in what I have to say

Anyway I have to agree with Big Yin's whole attitude. Its the pathetic sulky saddos who take a rate cut as a personal affront that I cannot abide. If JP Morgan want to cut contractors pay then fine, they save money, but the downside is that their value as an employer of a contractor is diminished so in the future contractors (in good times) may want more to hedge against uncertainties.

If I was an agent for say BP who pay lower rates but offer longer term security and dont cut contractor rates (as far as I know) then I would use this to sell against the banks.

[DodgyAgent]

Of course contractor 'churn' is a good thing for us so we should walk - even if that means putting your personal finances at risk (playing adocate here as that was the very reason I said yes in 2003) - there were some who said 'no' in 2003 and were consequently spoken to 'off the record' and advised there would be no rate cut for them on condition of complete confidentiality - i.e. didn't blag to the other contractors.

Depends how crucial you are to the project being worked on or how much you enjoy calling their bluff I suppose

Which just shows that EVERYTHING is negotiable.

[Mich the Tester]

Which just shows that EVERYTHING is negotiable.

You can offer alternative solutions; my current client has offices spread around the place; if they want me to take a rate cut I could offer them to move to an office closer to home and work 4*9 hour days; costs are then reduced for me and the client, so neither really has to suffer. It’s not a win-win situation but a ‘lose a bit less’-‘lose a bit less’ solution. As long as the client is prepared to negotiate I can find ways to help them save money, as long as it’s a proper business negotiation aimed at finding a solution acceptable to all. Of course, if a client simply demands an x% rate cut with no flexibility on working times or location, I’d possibly agree on a short term basis but my CV would be straight out to agents for alternative contracts.

[BrilloPad]

Also just heard that during last contract downturn (care to be pedantic about that terminology anyone?) they also tried to change the contracts to one day notice. But there was a revolt and it never went ahead.....

[Mich the Tester]

Also just heard that during last contract downturn (care to be pedantic about that terminology anyone?) they also tried to change the contracts to one day notice. But there was a revolt and it never went ahead.....

I'd take that and then **** off when it's really inconvenient for them. 'No, you're not getting my test report this week because I'm not coming back tomorrow. Bye!'

[expat]

Or accept the reality of life... rates can go down as well as up.

My rates go up or down from one contract to the next. That's contracting. I don't put my rate up during a contract, including renewals; and if a client puts it down, I'd regard that as a new contract, which I might or might not want to take.

If you need to take it, then the rate is obviously high enough!

[Beefy198]

Whilst I'm a little uneasy with clients changing their rates part way through a contract, I'm also uneasy with all the contractors that seem to think no matter what the rest of the world is doing their rates should be maintained or even increasing.

[DodgyAgent]

Whilst I'm a little uneasy with clients changing their rates part way through a contract, I'm also uneasy with all the contractors that seem to think no matter what the rest of the world is doing their rates should be maintained or even increasing.

On your first point, there is a large element of opportunism about this. Given the small amount of money that is at stake, a lot of this sort of behaviour is about people being seen to be tough and doing something. I also most certainly agree with your second point.

[denver]

Still thinking what to do....

I started my contract last month and just been told that they wana cut 15% rate.

I just started contracting and thats my very first contract since i made redundant from my Perm job couple of months ago.

Now, the issue is that im already on low rate (as compare to Market rates) and i also had to move for this contract.

Now, Im quite pissed with all this situation as this 15% deduction will be too much for my already fairly low rate.

From my perspective, a contractor takes a job risk and thats why makes big bucks. Now if i earn same (or bit more) as i'd in Perm, then whats the point.

Im not totally sure, but I think Im gona say If they really need me then we need to carry on with same rate.

So, whats the opinion of experienced chaps here??

[Purple Dalek]

I started my contract last month and just been told that they wana cut 15% rate.

I just started contracting and thats my very first contract since i made redundant from my Perm job couple of months ago.

Now, the issue is that im already on low rate (as compare to Market rates) and i also had to move for this contract.

Now, Im quite pissed with all this situation as this 15% deduction will be too much for my already fairly low rate.

From my perspective, a contractor takes a job risk and thats why makes big bucks. Now if i earn same (or bit more) as i'd in Perm, then whats the point.

Im not totally sure, but I think Im gona say If they really need me then we need to carry on with same rate.

So, whats the opinion of experienced chaps here??

There's the rub, experienced guys hardly ever get hit with these rate cuts, they're normally told in a quiet corner that it doesn't actually apply to them, but not to say anything to rock the boat.

Many contractors actually earn less than what they could get as permies. Strange as it may seem, many aren't in it for the money.

Then there are some like the threadeds of this world who are so stratospherically rich, they contract just for the fun of it. Bastards.