Reply to: Rate Reductions

[Sockpuppet]

I took a 20% rate cut earlier this year. Then again I was negotiating from a hospital bed with broken legs and cracked ribs. Although they did phone me up and ask me to return I wasn't exactly in the strongest negotiating position to capitalise on that.

[Sysman]

Last year with HP. 10% mid-contract. I figured 90% of something was better than 100% of nothing, which is of course what HP were betting on. PITA etc but it wasn't worth being obstinate about IMHO. And right now anyone who is in contract need to be aware of the current state of the market - principles are fine, but they don't pay the bills.

Since you mention HP, we had a similar situation nearly 8 years ago. A 10% cut on the grounds that the contract was for a year seemed reasonable enough because we knew the client was asking for a rate cut. However that one year turned out to be three months with a further 10% cut thereafter. I managed to negotiate my way around the second cut, but morale plummeted and most of us simply spent our time looking for new positions, not easy at the time.

[ItsQuickerAntiClockwise]

Yep, sounds like a barcrap tactic. Did this when I was working at Rabroke Hall in Knutsford. 4 weeks into a new contract when I was told at extension negotiations that there wouldnt be one where I was working. Told them I'd negotiate at the next renewal but not seeing as we'd just negotiated the renewal.

Spring wouldnt do anything so I told them to shove it.

Wont ever work for Barcrap again the bunch of *unts and my regular agents know not to contact me with any roles from them.

So no lingering bitterness there then

Mate its business, shaft or be shafted.

[gadgetman]

I got shafted by Accenture/Barclays at Radbroke. Contract was ending, interviewed elsewhere and was then offered an extension. Turned down the other gig then renewal was withdrawn with about a week to go.

Got the last laugh though, got another 6 month gig within a couple of days and a 25% increase.

[BolshieBastard]

Mid contract? That's a bit rude isn't it. I presume that means we're free to go job hunting mid contract and demand rate increases in the good times.

Yep, sounds like a barcrap tactic. Did this when I was working at Rabroke Hall in Knutsford. 4 weeks into a new contract when I was told at extension negotiations that there wouldnt be one where I was working. Told them I'd negotiate at the next renewal but not seeing as we'd just negotiated the renewal.

Spring wouldnt do anything so I told them to shove it.

Wont ever work for Barcrap again the bunch of *unts and my regular agents know not to contact me with any roles from them.

[Saddo]

....and start looking immediately

That only works if you have a termination clause on your side of the contract. That isn't always the case.

Not having a termination clause can look good from an IR35 point of view - you'd never have an employee stitched into something they couldn't get out of.

[gadgetman]

Managed to get a 10% increase on the last contract and another 22% jump when I moved to current gig.

As others have said if I was forced to take a cut I'd hold my tongue and start looking immediately. Not a problem over here right now but I know just finding a gig is more of an issue over there in a lot of markets.

[shoes]

Unless you have something to walk into of course. I was offered a 30% rate cut once, I found something else that was only 20% down on what I had been getting so I walked. Even when the client took me aside and said "well, you don't really have to take the cut". **** em, it was worth it IMO.

Funniest thing I've read in ages

[doodab]

4. Always have an implicit threat of walking, but don't actually ever walk.

Unless you have something to walk into of course. I was offered a 30% rate cut once, I found something else that was only 20% down on what I had been getting so I walked. Even when the client took me aside and said "well, you don't really have to take the cut". **** em, it was worth it IMO.

[CheeseSlice]

5. Turn up late in a smart suit one morning, for no reason.

interview outfit right? Doesn't work if you work in the city though.... pin-stripes every day

[swamp]

Once bent over and agreed a 5% rate cut on renewal that the client 'suggested'. They cocked it up and I got my full rate anyhow

Meanwhile one chap outright refused his 5% reduction, even to the point where the client was asking for a £1 reduction on his day rate. He stood firm and got his way! This taught me some lessons.

1. Always resist rate reductions. Set yourself apart, have a quiet word with the boss, be the 'special' one. Sod friends and colleagues!

2. Frame rate reductions in £ not %. £75 sounds a lot more than 15%.

3. Remember that every £5 lost or gained on your day rate is over £1100 per annum.

4. Always have an implicit threat of walking, but don't actually ever walk.

5. Turn up late in a smart suit one morning, for no reason.

6. Everything is business. Don't take things personally.

[AnthonyQuinn]

Cheers for the input; I'm not going to take a 20% reduction up the ar*e but may negotiate a smaller one - I'd ideally like to keep the contract and my current rate's not bad....

There is only one thing to consider

1. can you get a better rate anywhere else? The answer to that should help you decide. Dont be confused by anything else?

[monkeyrhythm]

Cheers for the input; I'm not going to take a 20% reduction up the ar*e but may negotiate a smaller one - I'd ideally like to keep the contract and my current rate's not bad....

[Sausage Surprise]

April 2009 30% cut at BT. Took me a month to find a new one, then walked...

[Wanderer]

Has anyone been hit with a request for a rate reduction mid-contract recently?

Mid contract? That's a bit rude isn't it. I presume that means we're free to go job hunting mid contract and demand rate increases in the good times. All's fair.

My agent demanded a 10% rate reduction and got very aggressive very quickly. It was an across the board rate cut and that pissed me off straight away as there was no consideration of the project I was working on. They didn't cut it in the end but these do this stuff every day for a living and man do they have a thick skin. Agency has now informed me that that particular person will never phone me again after a word from the client.

Another time I accepted a 5% cut at renewal. Fair enough, I wanted to stay on and I wasn't willing to pick a fight over 5%. I'll remember that when times are looking up though and I'm clawing it back.