Reply to: 10% rate cut again!

[russell]

<cough> Pardon???

Sorry finger slipped.

terminate your contract with immediate effect.

[d000hg]

In the world where "Bob" sees very little of it - i.e. reality.

Irrelevant... if bobs are now going for £300+, they are not so much cheaper anymore. UK people will take £350 roles - if I was already living in London I'd take £350 (though obviously wouldn't move there for that).

[lukemg]

As discussed-
1. No point just turning down flat, express disappointment but dont give ultimatums unless you are certain you will walk.
2. Immediately start looking, nice to walk away under these circumstances (last minute if poss)
3. Nothing else turns up in time, take the cut and keep looking. I personally would maintain work level but you can forget extras - hours, calls out of hours etc. Keeps the revenue coming though.
4. If I found something else I would have no qualms walking off mid contract, which I would not do if treated fairly.

[northernladuk]

I would wait till they actually apply the second cut, then say no and threaten to walk. They will either change their mind or fire your sorry ass.

<cough> Pardon???

[russell]

Last month my contract rate was cut by 10%.

My boss wants to extend my contract this month and wants me to work on a new 3 or 6 mth project.

I asked him if I could increase my rate and he told me it was difficult because:

1) senior management wants to cut contractors and hire a IT company like InfoSys, who will supply Indian staff at a charge out rate of £350 a day which is much lower than ours.

2) In addition to this, rumours of a second 10% cut in contractors rates have been floating around the city and in Canary Wharf.

Faced with this issue, I'm looking for a new contract because my rate keeps on falling and falling and I can not tolerate another 10% rate cut. Loyality gets you nowhere!

Question, what should I do apart from look for a new contract?

Should I make my rec agency absorb second 10% rate cut if it happens?

Or

Should I wait till it happens and then walkout from the job by not agreeing with the 10% rate cut?

Also, my agency has a 6 mth clause that I can not work at the same company again, unless with via them.

Any tips or help?

I would wait till they actually apply the second cut, then say no and threaten to walk. They will either change their mind or fire your sorry ass.

[TheFaQQer]

If you're opted in, is there any time limit enforceable? I thought there was still some....

Yes, but it's not 6 months. IIRC, it's 8 weeks from the end or 14 weeks from the start, whichever is later.

[psychocandy]

Speak to your boss, find out how much they are paying the agency and get that margin down to 7-10% if it's above that.

If that doesn't work then tell the boss you will consider the offer of an extension and start looking for a new contract. If you get a better offer then hand in your notice or turn down the extension.

Sod them, if they cut rates then they are going to lose people.



Top tip: don't opt out next time and this won't be enforceable.....

If you're opted in, is there any time limit enforceable? I thought there was still some....

[psychocandy]

In the world where "Bob" sees very little of it - i.e. reality.

Thats what I meant. If IT company is charging £350, Bob on the ground is possibly getting £100 of it.

Of course, original company is happy because they're paying £350 instead of £500 for a proper contractor but getting a useless Bob whos doing it for £100.

Unfortunately, my current client is the world worst for this. All they can see is cost savings.

[Peoplesoft bloke]

In what world is £350/day "next to nothing"?

In the world where "Bob" sees very little of it - i.e. reality.

[d000hg]

Same old story the world over. Get the Bob offshores in for next to nothing. Save a fortune.

In what world is £350/day "next to nothing"?

[Wanderer]

Should I make my rec agency absorb second 10% rate cut if it happens? Or Should I wait till it happens and then walkout from the job by not agreeing with the 10% rate cut?

Speak to your boss, find out how much they are paying the agency and get that margin down to 7-10% if it's above that.

If that doesn't work then tell the boss you will consider the offer of an extension and start looking for a new contract. If you get a better offer then hand in your notice or turn down the extension.

Sod them, if they cut rates then they are going to lose people.

Also, my agency has a 6 mth clause that I can not work at the same company again, unless with via them. Any tips or help?

Top tip: don't opt out next time and this won't be enforceable.....

[psychocandy]

Same old story the world over. Get the Bob offshores in for next to nothing. Save a fortune.

Realise down the line that they're completely useless and lose loads more money because customers are peed off with the crap service...

[ChimpMaster]

Boss is much less verbose than "hiring manager".

Tell your boss that he should give you a ring once the IT company has proved that £350 a day isn't value for money, when it takes twice as long to get anything done for half the quality, and you're locked into a contract for five years.

It won't work because management's pockets are being lined with bonus payments depending on how much they can reduce consultant rates. This was the case at one of my prior engagements, where offshoring was the objective and management were going at contractors blindly with an axe - without a care in the world, so long as they got their bonus.

[NotAllThere]

Boss is much less verbose than "hiring manager".

Tell your boss that he should give you a ring once the IT company has proved that £350 a day isn't value for money, when it takes twice as long to get anything done for half the quality, and you're locked into a contract for five years.

[kingcook]

do we really need to pounce on people when they say things like that?

ooo... this is a contractor forum, you can't say boss or job

sigh!

Yes! We do!