Reply to: Rate cut without waiting for renewal

[centurian]

We are aware this is unwelcomed news, but *this decision is important in contributing to ******’s 2009 strategy. *

profits

[xux42]

fwiw they cannot simply say "if you don't agree these terms we will assume you have given two week notice". If anybody is going to terminate because of the reluctance to accept revised conditions then it is them, and they must still do it within the existing terms of the contract (which could be worse for you of course).

Well they have not yielded ground, but at least they did respond in the timescale I asked for:

"Dear ********,
This is a group decision and therefore a group wide reduction scheme. ****** values it’s conatrcator workforce which is the reason why the decision has been taken to reduce rates, rather than the contractor population.

IR35 status is determined by substitution, control, financial risk, deliverables, Mutuality of obligation and notice periods, therefore a rate reduction would have no impact. As the existing contract is terminated early and a new contract is raised detailing the new rate, this does not affect IR35 status.

We are aware this is unwelcomed news, but *this decision is important in contributing to ******’s 2009 strategy. *

Thank you for your continued contribution to ******.

Regards"

The lower rate create no problems as such, but I think its time to make serious efforts to move on, or pursue conversion to Permie which has been kicked around as a possibility for a while.

[ASB]

Very droll.
Nothing further yet - perhaps they are having trouble agreeing on the exact wording for their grovelling apology.

fwiw they cannot simply say "if you don't agree these terms we will assume you have given two week notice". If anybody is going to terminate because of the reluctance to accept revised conditions then it is them, and they must still do it within the existing terms of the contract (which could be worse for you of course).

[xux42]

Very droll.
Nothing further yet - perhaps they are having trouble agreeing on the exact wording for their grovelling apology.

[Tensai]

Have now received a courteous email promising a security escort out of the building later today.
At least I am not just being ignored. Will update later.

[xux42]

We'll I don't hate you
Still no reply from the hatchetmen. My inability to know my place appears to have left them unable to type from shock.

Have now received a courteous email promising a full response later today.
At least I am not just being ignored. Will update later.

[xux42]

Ugh, i admire and hate you at same time

*wish's had sorted his affairs that well so he quit his current awefull contract and go somewhere warm for a year or two*

We'll I don't hate you

I've been fortunate to get generous redundancy & immediately get a reasonable, local contract.

Things wouldn't look good at the end of the 2 years, but this situation does show how a contractor with substantial savings can undermine a client's attempts to throw their weight around.
Still no reply from the hatchetmen. My inability to know my place appears to have left them unable to type from shock.

[Not So Wise]

Maybe that was rash but I have arranged my financial affairs to withstand >2 years downtime so I can afford to send the message out that I will not be pushed around.

Ugh, i admire and hate you at same time

*wish's had sorted his affairs that well so he quit his current awefull contract and go somewhere warm for a year or two*

[foritisme]

[xux42]

Translation: Discuss this with your ******* Manager to get full facts before making any decisions

Too late, I've already sent a terse email direct to the "faceless hatchet people" effectively threatening to stymie the project deadline by reverting to contracted hours.
Maybe that was rash but I have arranged my financial affairs to withstand >2 years downtime so I can afford to send the message out that I will not be pushed around.

[xux42]

Who's instigating this rate cut, the client or the agent?

From reading the email, it seems the agent is trying to increase their margin on the back of cutting contractor rates, hence the 'dont discuss with ***** managers! (That's the way I read it.)

No, I contract direct with a division of the Client that acts as an 'Agent' (they do a very good job BTW, efficient and prompt payers).
This is a hatchet job by some very hard nosed, faceless corporate types. Local line management & the people who routinely deal with contracts were kept in the dark.

Not very nice is it?

[Not So Wise]

Please be aware that all pay related discussions should be held with your contractual partner and not a ******* Manager.

Translation: Discuss this with your ******* Manager to get full facts before making any decisions

[BolshieBastard]

Who's instigating this rate cut, the client or the agent?

From reading the email, it seems the agent is trying to increase their margin on the back of cutting contractor rates, hence the 'dont discuss with ***** managers! (That's the way I read it.)

I'd seek an urgent meeting with the client and ask them what they know about this. If they say they dont know anything tell them what the agent is trying to do and drop in a few comments about the tight deadline and 50 hour weeks you're doing to achieve it.

[d000hg]

How about just dropping back to 37.5hrs and dropping them in it if they insist on the cut?

Yes, don't say anything, just stop working overtime. When you get asked, say management acted unprofessionally and forced a rate cut mid-contract, and you don't see why you should slog your gut out.

[BrianSnail]

If you're on a daily rate accept the 10% cut on the condition you go onto an hourly rate.

10% drop + >10 more hours = BOOMED!