Reply to: rate cuts in the city.

[Alexander Coe]

Sod that - get the agent to reduce his margin as well.

Yeah, have heard the agency/EB are helping absorb this for some of the effected contractors, so well worth a try!

[Ruprect]

My initial thought was to absorb it as been here a while and on a decent rate anyway but now you mention it and coincidentally a chat today about more/extra work coming my way I might hold out; less moolah for more sh*t does not compute ....

Even more so if you've been a cash cow for the agent for a while. Make sure they take a cut too.

[kismet110]

Sod that - get the agent to reduce his margin as well.

My initial thought was to absorb it as been here a while and on a decent rate anyway but now you mention it and coincidentally a chat today about more/extra work coming my way I might hold out; less moolah for more sh*t does not compute ....

[ratewhore]

Sod that - get the agent to reduce his margin as well.

I concur...

[Moscow Mule]

I work at the same IB, got a call from my pimp yesterday stating the same. Did mention to him I have a potential gig lined up in NL but will absorb the 5% hit if they sort out the paperwork quickly and it's 6 months as per last time ...

Sod that - get the agent to reduce his margin as well.

[kismet110]

Just heard the large British invest bank I'm based at is subjecting all contract renewals to a 5% rate cut, given the market conditions... any reports of this going on in other financial companies?

I work at the same IB, got a call from my pimp yesterday stating the same. Did mention to him I have a potential gig lined up in NL but will absorb the 5% hit if they sort out the paperwork quickly and it's 6 months as per last time ...

[dude69]

Yup.

http://www.houseinphuket.com/houses/LTR/a0133/

@700 quid a month, I reckon my pile would last until the next boom/bubble.

£700/month?

Seems quite expensive for Thailand.

For the same money in Bali:

http://www.ptbalirealestate.com/List...pertyID=678490

Or if you want super-cheap,

http://www.rumahraya.com/katalog.php?aksi=lihat&id=240
£80/month

[Sockpuppet]

Good thing I'm in the habit of saving money for people.

When the markets are good I do new builds. When the markets are bad I do cost reductions.

Whatevre happens people will still buy cheap tulip from china so there will be a need for logistics.

[Lewis]

How often do those kinds of clients actually go through with their rate cuts?

By which I mean:
(1) they ask the contractor to lower the rate
(2) contractor says no
(3) contract is terminated (or not renewed, when the original plan was to renew).

I'm sure lots of contractors bottle it and cut their rates when asked, but that doesn't count.

You would have to be VERY special for them to renew if you say no to the rate cut (plus authroisation would need to come from up high to make an exception). Plus they will look to replace you pretty sharply too. For 99% of people you either take the cut or leave. I've had it happen a few times in the last 10 years, all around 6 years ago.

That said. Here at this top tier IB in Canary Wharf there is no discussion of rate cuts. Recruitment is up and rates are extended on renewal (as appropriate obviously) as far as I can tell. I've no concerns as yet. But these things can change very quickly.

[HairyArsedBloke]

Today's Alex cartoon in the Telegraph is good.

[max]

How often do those kinds of clients actually go through with their rate cuts?

By which I mean:
(1) they ask the contractor to lower the rate
(2) contractor says no
(3) contract is terminated (or not renewed, when the original plan was to renew).

I'm sure lots of contractors bottle it and cut their rates when asked, but that doesn't count.

1) every 6 months
2) then they leave
3) IB contracts normally pay enough that you'd never leave if you have a choice.

Once they have it in their mind it's pretty much done, like the Terminator...


Good times will come again....don't know when..until then grin and bear it.

[miffy]

I once went through a permie rate cut. 25% across the board I walked!

Ouch, I'm not surprised

I would have done the same. Fair play there.

[Gonzo]

Sounds ominously like 2001. The first sign is a rate cut. The first one isn't so bad, shut your eyes and grit your teeth so to speak, but then comes the next cut and another one, and then swathes of contractors aren't renewed....

Hold on to your hats....

Wot he said.

Along with the permie offers.

It is not all bad though. I am in Fund Management and there are no such signs here.


Yet.

[swamp]

I once went through a permie rate cut. 25% across the board I walked!

[thunderlizard]

How often do those kinds of clients actually go through with their rate cuts?

By which I mean:
(1) they ask the contractor to lower the rate
(2) contractor says no
(3) contract is terminated (or not renewed, when the original plan was to renew).

I'm sure lots of contractors bottle it and cut their rates when asked, but that doesn't count.