Reply to: Push back on a rate cut

[stillooking]

Spring used to be reasonable to deal with a while back but as time progresses they really are just in the same mould as Hays etc.

They used to be flexible with contract terms but now they have an in-house legal dept that are totally inflexible. btw the std contract terms are within IR35 etc

Added to which the staff are generally t**ts

[youwhut]

You need to gauge the situation. A 10% rate cut was imposed on me way back in August 2008. I know that the other contractor I was working with was awkward about the situation and I believe he may have retained the original rate. I was still fairly new to contracting (1 year ish) and felt that I should take the rough with the smooth so accepted the cut. I was given continuous work throughout 2009 whereas the other contractor was nowhere to be seen.

We all like to play hard ball but everyone's situation is different.

Of course, if you feel the agency is playing up then balls to them.

[chicane]

I recently pushed back on a mid-contract rate cut initiated by the client rather than the agency. The client backed down and agreed to keep the rate unchanged for the remainder of the contract.

I wouldn't recommend this approach to everybody though - you have to be confident that the client needs you more than you need them.

[meridian]

Great strategy, all you fellas start walking, hopefully that'll free up some contracts for the rest of us.

The reality is unless you work for an IB then your client is feeling the pinch so they (understandably) want to cut costs. You can either accept it, or move on and let someone else who will accept it take over.

Unless you're a specialist, saying to the agent 10% of something is better than 20% of nothing just won't work - the agent will probably have another contractor lined up who will gain him 30% and will walk away laughing.

[Fred Bloggs]

I'm in a similar situation, been contracting through an agent for the same client for almost three years. Got new contract till end March with major rate cut. Agent says there is no negotiation with client with regard to rate, so I have decided to accept for now, and start actively looking for another contract. I think after being in the same place for nearly three years, its time to move to pastures new.

Agreed, good luck. Sound strategy.

[cojak]

In these straitened times you can only negotiate hard if you have specialist knowledge/experience and would be difficult to replace.

It might stick in the throat but no-one would call you a fool* for accepting and waiting for better times.

*Except for BolshieBastard perhaps...

[paddytheirishman]

I'm in a similar situation, been contracting through an agent for the same client for almost three years. Got new contract till end March with major rate cut. Agent says there is no negotiation with client with regard to rate, so I have decided to accept for now, and start actively looking for another contract. I think after being in the same place for nearly three years, its time to move to pastures new.

[MPwannadecentincome]

. Did you opt out of the Agency Regs? Did you opt out before you started working for the client?

I thought you had to opt out before being introduced by the Agency to the client?

[BolshieBastard]

Tell spring to **** off as you know they are trying it on. Tell them no rate cut or you'll walk. But be prepared to walk if they call your bluff.

[speedo]

Going back to my experience with Spring - they were an absolute shambles!
1. They gave me the impression they hadnt contacted my client's HR with a request to increase - i got a sly email from Spring stating that because of the current climate they expect the client to reject any rate increases.
That statement pretty much gave it away that they hadnt even bothered contacting the client HR representitive. Once i started to kick up a fuss with both client and agent, it was only then they actually talked or i was led to beleive they talked.... to be honest i had lost faith with Spring by then!

As a seperate note - Spring do have some guidelines on rate increases and if you have a creditable reason on a rate increase then they can take a hit on their margins. Another contractor at my place did not get a rate increase for 2 years... but then he asked the question especially as he was fundamental to the projects going on ..... and he managed to sqeeze Spring's margin by about £15-£20 per day, unfortunately working in the public sector the rates are much less and HR are just not with the plot.
Perhaps you want to go down this route and build your case with your client and see if you can turn the screw on Spring!

Good Luck.... the only good thing about Spring is there online timsheet and self bill... apart from that they are naff!!!

[northernladuk]

I presume you are not claiming travelling expenses anymore due to the 2 year rule? Maybe I should say I hope you are not.

Even though you are not might be worth pointing out that now you are over 2 years you cannot claim travelling expenses anymore and therefore effectively took a cut last renewal. Helps with the bargaining possibly.

[BrilloPad]

Good Morning, this is my first post so bear with me. I have been in my current contract for 2.5 years, in that time despite taking on more teams I have had one small rate increase. Current contract ends on Dec31st and I have been asked to extend to the end of March (all of my previous extensions have been 6 months or more). The agency want me to take a 20 quid a day cut and are basically telling me to get lost if I won't accept it. I do have a local HR contact who tells me that this is not being forced on them by the client so it sounds like the agency wanting to up their cut. They won't give me details on margins and won't offer any other reasons. Has anyone else had this problem with Spring ?

Do clientco want to keep you or are they desperate to keep you?

[singhr]

Tell the agent you have a better offer, closer to home through a personal contact and it's virtually in the bag but are prepared to stay at current client out of loyalty if the rate is the same. Also remind him that 10% of something is worth more than 20% of nothing. Good luck

[Eggnchips]

Thanks for the replies, it has been convenient with regards to location but I am sick to death of Spring's high handed attitude.

[speedo]

I had a similar repsonse from Spring when my contract renewal came up a few months back....i investigated this further and found out the following:
1. My line manager was ok and agreed to my rate increase,
2. HR had to initiate this with my line manager, but didnt as they refused the rate increase with Spring - supposedly!

Basically i had to accept the contract at the same rate.... didnt really have much choice as i never had anything else on the go. Which is my suggestion to you- take the contract and keep looking in the meantime.

I have learnt my lesson - as contracting indivduals we should look after ourselves and if something comes around which is better for whatever reason then there is no reason why we shouldnt move on, and serve notice.