Reply to: pimp/client wanting to reduce rate mid contract

[The Agents View]

Ignore calls, wait for it in writing.

As it stands you have a contract, with agreed terms, payment terms, etc etc. If they want to change that, it needs to be put into writing, and needs to be agreed by all parties. If they withold your pay, communicate in writing only, stating that the terms of your contract are payment in x days, and that nowhere in your contract does it say that you have to answer the phone to a recruiter in order to be paid for work.

You'll soon find out if the agency is trying it on.... whilst the RTG element of me wants to think that the agent is under pressure, being squeezed, and is trying to make things fair for all - I just get the feeling that's not the case - unless your line manager, or the person who controls the contract between clientco and agent, lacks the balls to tell you what he has done face to face..... in which case - why would you want to work there anyway??

[AngelOfTheNorth]

I'd say this is great advice. Even if you have absolutely no intention of looking elsewhere this shows that flexibility works both ways. Make sure client doesn't make the mistake of assuming you just want to leave though as this could easily be misinterpreted into that, especially when agents are involved!

Unless of course they don't really care if you go or not.

Have had the same thing happen to me, except the client had tried it on and pushed it through the agency. It happened across the board though.

My suggestion is along the lines of others. Wait and see if they push the issue - basically eeek it out and say you are seeking professional advice RE the validity of changing the terms of the contract mid-term. Perfectly acceptable commercial practice ! When they do push it, ask them to confirm in writing that the client has requested this rate cut and ask for the reasons why (e.g. budget cut etc). Then, if you have a good enough relationship with the client, validate those reasons to make sure they are true and, if possible, ask them to confirm what rate cut they asked for (to make sure the pimp isn't trying to maximise their margins).

If you really want to stay though, in the end, ask for a new contract to be drawn up with extended terms (e.g. 3 months longer) so you can claw some of that back over the longer term.

At the end of the day, you are a 'supplier' of services and a contract, based on those services and an agreed price, have been set. The only way they can forcibly 'unset' them is to terminate the contract. If they did terminate based on a rate cut and that isn't stated as a reason for termination, thats questionable practice.

Bottom line, gather the facts, negotiate some options and then make a call. In the meantime, keep your eyes peeled for something better !!! The client who tried this on backed off once they realised I was going to walk and I made no fuss about it just politely said No to the rate cut and they changed their mind. Keep it professional, gather your intel and then make the call. For a 11% cut, its time well spent and the client will respect you for it.

[d000hg]

Does 11% put it on a nice round boundary daily/hourly perhaps (maybe for the agency rate)

[MonzaMike]

Why 11%

Sounds a dodgy number to me. Who came up with 11%?

I've often heard of rate cuts in 5% units. e,g, 10%, 15%

I've had this happen twice to me, but both times it applied to every contractor and I had notification from client explaining why.

If no-one else is talking about it and Client shows no knowledge then I'd guess that you are being shafted.

[d000hg]

A few ideas depending on how ballsy you are:


1)"That seems very unprofessional of them mid-contract. Why didn't they bring it up at renewal? How would they view it if a supplier demanded a higher rate mid-contract?"

2)See if you can carefully talk to someone at client-co about it. "Yeah, it's going well but I should give you unofficial warning I might not be hear as long as I hoped. My agent rang me and said I'm being forced to take a substantial rate cut mid-contract so I might have to look for something else... I really like it here but what'd you do if you were given a good review and then told to take a salary cut?"

3)Just ignore it. Don't answer the phone to your agent, wait for something in writing.


Aren't I full of helpful advice? Of course in real life I'm sure I'd knuckle under and take it like SY01.

[escapeUK]

If you are on your 2nd contract they obviously like your work.

So Id say no. I wonder what the reaction would be if mid contract you wanted 10% more. Do you think it might just be the pimp trying it on?

[Worzel]

What is your notice period ? Say you will take the cut if they are prepared to reduce the notice period to 1 week, the threat will be implied.

I'd say this is great advice. Even if you have absolutely no intention of looking elsewhere this shows that flexibility works both ways. Make sure client doesn't make the mistake of assuming you just want to leave though as this could easily be misinterpreted into that, especially when agents are involved!

Kind of makes you wonder whose writing those bullish contractor stories when we're still seeing threads about rate cutting mid contract.

[AngelOfTheNorth]

Youve not got to think of it as a rate cut, just simply 'Is the money now in front of me worth it?'

If so take it. If not leave.

You cant just think about 'what you could have won....'

[Brussels Slumdog]

You will have to leave one day.

The bottom line is that you are a contractor and you will have to leave at some point,whether at the end of the month or end of next year.
You provide your skills and in return you receive a daily rate + you gain some
more knowledge to add to your skills+ you make some friends.
When to leave is simply a question of timing.
The market is improving at the moment for some skills but getting worse for others
Only you can make that judgement whether to go or to leave.

[Jeebo72]

Hi Fellas

well, just had a call from my pimp and the client co want to reduce my rate by a whacking 11% !!!! I am in my 2nd contract with the client and am mid term of a 6month role. What are your thoughts? accept, negotiate or jump???

cheers

JUST SAY NO.

[lukemg]

What is your notice period ? Say you will take the cut if they are prepared to reduce the notice period to 1 week, the threat will be implied. Work at the same level as before, no resentment, stirring etc and start looking. You find something, that's business, if not then you are still earning.

[expat]

Don't burn bridges or stick yourself in the schtuck out of some self righteous need to make a point.

That's true. Don't try to pretend you won't sell out, you've already done that. It's just a haggle about the price.

[Scrag Meister]

I had to take 15% cut 18 months ago mid-contract.

My view then, with the market as it was then, was 85% of something is better than 100% of nothing.

If you can handle the drop, do it and then look.

Don't burn bridges or stick yourself in the schtuck out of some self righteous need to make a point.

[Mich the Tester]

Depends on your warchest. If you have enough in the warchest, you can negotiate and if they don’t want to negotiate, walk. You could offer a lower rate to work at home or a more convenient location for you. Otherwise, you might have to swallow it.