Orange cutting contractor rates by 10% on renewal

[expat]

Agreed. Why the **** should rates be cut mid contract? What would clients say if we wanted a rate increase (in good times) mid contract?

They'd say **** off rather than cave in. It is open to contractors to do likewise. Whether you want to is up to you.

[ABSTRAX]

Sounds like Orange have been one of the few more respectful companies in this current climate...

Clients from Visa to T-Mobile have cut rates on the spot and had contracts reissued... I overheard today that there was an organisation that had cut rates by 10% a few months back and had just pushed another rate cut on top of that to the tune of 15%!!

I can understand the element of supply & demand here... and contractors have pushed rates up when they / their skills are the commodity... now that the jobs are the commodity, clients are simply doing the same in pushing the rates down... it's a fair system at heart, but I can't agree with them ripping up the original contract and making their new rates applicable just like that...

[BolshieBastard]

That's the way a rate cut should be implemented IMO: on renewal, not terminate and re-sign.

As for the current state of the market, why shouldn't they use this as the sole basis for cutting rates on renewal? Would you pay £300 a day for a plasterer in London when there are plenty of good ones around for £150?*




* I'm guessing these figures BTW...

Agreed. Why the **** should rates be cut mid contract? What would clients say if we wanted a rate increase (in good times) mid contract?

That said, my banking client hasnt cut rates even though they had to get a $20billion injection from Uncle Sam.

[Iron Condor]

Orange are cutting their IT contractor rates by 10% on renewal - announced last week and currently filtering it's way down the ranks. Unlike the banks, they're far from being in financial difficulty - it seems that they're doing this because of the current state of the market.

Anybody here affected?

When I once asked for a rate increase at renewal, sighting the increased market rates since i started, my manager accepted my terms but also made the remark 'i bet you wouldnt be asking for a cut if market rates were down instead of up'. I replied, 'no i wouldnt, it would be your job to try and cut me down when market rates fall'.

Neither we or they can have it only one way. Although it never stops either party from trying it on.

[swamp]

As others have said in relation to rate cuts though - I wonder if they'll do a hissy fit when contractors ask for rate increases upon the (eventual) return of the boomed days?

Let's hope so

[chicane]

As for the current state of the market, why shouldn't they use this as the sole basis for cutting rates on renewal?.

I meant this to come over as an observation of their actions and the underlying reasons rather than a judgement - although I can see how it was open to interpretation. You're right in saying that they can't be blamed for doing this.

As others have said in relation to rate cuts though - I wonder if they'll do a hissy fit when contractors ask for rate increases upon the (eventual) return of the boomed days?

[AlfredJPruffock]

That's the way a rate cut should be implemented IMO: on renewal, not terminate and re-sign.

As for the current state of the market, why shouldn't they use this as the sole basis for cutting rates on renewal? Would you pay £300 a day for a plasterer in London when there are plenty of good ones around for £150?*




* I'm guessing these figures BTW...

They are manipulating the Market - this entire credit crunch is a con.

[swamp]

Orange are cutting their IT contractor rates by 10% on renewal - announced last week and currently filtering it's way down the ranks. Unlike the banks, they're far from being in financial difficulty - it seems that they're doing this because of the current state of the market.

Anybody here affected?

That's the way a rate cut should be implemented IMO: on renewal, not terminate and re-sign.

As for the current state of the market, why shouldn't they use this as the sole basis for cutting rates on renewal? Would you pay £300 a day for a plasterer in London when there are plenty of good ones around for £150?*




* I'm guessing these figures BTW...

[chicane]

Orange are cutting their IT contractor rates by 10% on renewal - announced last week and currently filtering it's way down the ranks. Unlike the banks, they're far from being in financial difficulty - it seems that they're doing this because of the current state of the market.

Anybody here affected?