Email from agency 'requesting' a 10% rate reduction

[Zippy]

ClientCo may not know about this.

Maybe the OP could express some "genuine concern" for the company and express the hope that they won't be cutting permie salaries anytime soon. Or is that too much?

[Platypus]

I think it's a fairly common occurrence. I took a rate earlier this year

In my case, the cut was pushed through by procurement. The folks I was working with, peers and managers, knew nothing about it. They just shrugged when I mentioned it.

Some good advice from others though: ask around your fellow contractors and do mention it to the person you report to. I don't see it can hurt you to make a few discreet enquiries.

[Board Game Geek]

In a fair, open and transparent transaction, all sides should be able to negotiate openly.

When one side imposes unilateral conditions, you can be certain that there is an agenda that is not in your best interests, and the imposition of "keeping quiet" is neither fair nor favourable.

Go straight to the client's manager on site who deals with the agency.

Ask him or her outright if they have reduced their payments to the agency by 10%.

If they say no, then show him the agency email in which the agency "talk on behalf" of the client, and spread lies and falsehoods, and ask the manager if he is happy with the agency using his company name to cause grief among the personnel.

If the manager is embarassed and says "yes, we did ask the agency to do this", then accept his honesty and reassure him that whilst you didn't want to embarass him further, you just wanted to get the truth of the matter.


If the agency are pulling a fast one, Name and Shame the agency so other contractors can avoid them or know of their lack of ethics.

Because if the agency are having to cut contractor rates on the sly, then it may just be that they are having cash flow problems and next month monies owed start to get delayed or worse.

[Zippy]

I suppose the thing that makes me really suspicious is the reference to ClientCo's cost cutting policy by the agent. We get frequent postings on here which argue that what the client pays the agent is none of our concern, being a commercial arrangement between those two parties. As contractors, our arrangement is with the agent. So why refer to the client now, as they did in the email to you? As a contractor the agent/client deal is none of your business (most agents would argue).

It could well be that the client has requested a rate cut, but it is hypocritical of the agent to blame them for it. (and I'm being charitable to the agent here)

[Mich the Tester]

The client has a right to know; it's not professional to let the client continue to expect the same service if he doesn't know that the price has been reduced. Tell clientco, and if he says he hasn't reduced the rate, then tell client you wish to continue working via another agent; your agent has breached the contract so he can fuq off.

[Paddy]

I suppose the thing that makes me really suspicious is the reference to ClientCo's cost cutting policy by the agent. We get frequent postings on here which argue that what the client pays the agent is none of our concern, being a commercial arrangement between those two parties. As contractors, our arrangement is with the agent. So why refer to the client now, as they did in the email to you? As a contractor the agent/client deal is none of your business (most agents would argue).

It could well be that the client has requested a rate cut, but it is hypocritical of the agent to blame them for it. (and I'm being charitable to the agent here)

In my early contracting years I fell for this trick. I only found out when the agent inadvertently mailed me his invoice for the client. The agent was telling porkies. I was very friendly with he client and so I talked to them about it. The client dropped them as their supplier and I made a deal with another agent also cutting their margin from 20% to 8%.

A similar thing happened with a fellow contractor by an agency that used to be owed by a well known personality. This time it was the client who discussed the matter with the contractor who then found he had been stitched up. The agency then made up the difference.

I don’t know it is the same in this case, but often the client will stipulate a requirement for contractor on a rate of £x and a mark up of £y.

[BolshieBastard]

Elan eh? C*nts.

[pzz76077]

Elan eh? daffodils.

They dont have a good reputation around here- they seem to send the cheapest Muppet that they can make the most margin on. The average one lasts about 4 weeks before they leave for another contract.


PZZ

[swamp]

Ask the client about this, and if your agent is pulling a fast one get straight on to him and demand a 10% rate rise or you'll tell the other contractors on site.

[thunderlizard]

will consider positively the flexibility you will demonstrate through accepting this change, in conjunction with the business requirements for the role at the time of your next contract renewal.

So they're not intending to terminate early. It's just a chance for you to demonstrate your flexibility. Aren't they nice, giving you a change to shine and demonstrate your flexibility like that?

And when they weigh up your flexibility against those "business requirements" (according a fair whack more weight to the latter than the former, one would hope), you'll be considered positively. I can almost hear the applause and air-kisses already.

Now, an old cynic like me might say any flexibility you demonstrate now will be well and truly forgotten when renewal time comes around, and you'd be more effective demonstrating it at the point of renewal (as well as having billed the correct amount instead of an unexpectedly below-contract rate).


Got to go, I'm off to Dixons to tell them the £8000 flatscreen TV I bought in 1999 is now worth £500, so how about my £7500 back?

tl