From http://news.hereisthecity.com/news/b...ews/7896.cntns
Angry IT recruitment firms have been inundating HereIsTheCity with the news that Merrill Lynch is imposing 11% pay cuts for technology contract workers. The firm has confirmed that the demand is part of a firmwide cost-cutting initiative.
Although their US counterparts were apparently advised of the situation last month, London-based recruiters were told just last week - and effectively given 48 hours to sign-up to the change.
Here's the e-mail that went out from Merrill to its London-based recruitment providers last week:
'Hi all
Merrill Lynch has recently undertaken cost cutting initiatives throughout the firm. As such, Merrill Lynch Senior Management is requiring an 11% pay rate cut for technology contract workers in RAQS, effective 21st June 2008. This is a Merrill Lynch firm-wide initiative and has been communicated to all Hiring Managers by Senior Management.
Detailed below are your impacted contract workers. Please could you communicate the change to all of your contractors today and confirm back to the recruitment team by COB 23rd May that this is complete. If we do not hear back by COB 23rd May, we will initiate pay rate reduction amendments and will not make any further changes. If you chose not to participate, your resources will be terminated in accordance with the contractual notice provisions in your Consultancy Agreement with Merrill Lynch.
We recognise the impact this reduction will have on your company and we request your partnership in assisting Merrill Lynch achieve the mandated cost saving objective. Your support and co-operation is very much appreciated in this effort and in assisting Merrill Lynch meeting its goal of little or no interruption of work assignments.
As a valued Merrill Lynch partner, we are sure you understand in the current environment such actions are necessary for the health and sustainability of the firm. Your firm has benefited from Merrill in the good years and we appreciate your dedication in today's environment.
Please feel free to contact the Technology recruitment team if you have any questions regarding this message.
Regards'.
And Merrill Lynch might not be the only firm considering imposing pay cuts on IT contractors, as our sources advise that other firms may be about to follow suit. One recruiter told HereIsTheCity: 'Firms like Merrill Lynch always seem to go for the easy targets. They have ridden rough-shod over US subprime borrowers, fleeced shareholders, laid-off staff in their thousands, and now they appear determined to affect the livelihood of suppliers and make it difficult for IT contractors to earn a living during this period of economic uncertainty'.
Another said: 'We appreciate that times are difficult for firms like Merrill, but we are suffering too. It's stuff like this which may push many of us to the brink of failure - and where will Merrill Lynch get its IT contractors from then ? The way this has been communicated also smacks of arrogance. Merrill could have called us in to a meeting and got one of its senior managers to explain the position face-to-face. We wouldn't have liked it, but at least it would have given us the impression that they really understood our position too. Instead, the firm chose to send out a 'take-it or leave-it' e-mail leaving us with little time to plan and no room for manoeuvre'.
Angry IT recruitment firms have been inundating HereIsTheCity with the news that Merrill Lynch is imposing 11% pay cuts for technology contract workers. The firm has confirmed that the demand is part of a firmwide cost-cutting initiative.
Although their US counterparts were apparently advised of the situation last month, London-based recruiters were told just last week - and effectively given 48 hours to sign-up to the change.
Here's the e-mail that went out from Merrill to its London-based recruitment providers last week:
'Hi all
Merrill Lynch has recently undertaken cost cutting initiatives throughout the firm. As such, Merrill Lynch Senior Management is requiring an 11% pay rate cut for technology contract workers in RAQS, effective 21st June 2008. This is a Merrill Lynch firm-wide initiative and has been communicated to all Hiring Managers by Senior Management.
Detailed below are your impacted contract workers. Please could you communicate the change to all of your contractors today and confirm back to the recruitment team by COB 23rd May that this is complete. If we do not hear back by COB 23rd May, we will initiate pay rate reduction amendments and will not make any further changes. If you chose not to participate, your resources will be terminated in accordance with the contractual notice provisions in your Consultancy Agreement with Merrill Lynch.
We recognise the impact this reduction will have on your company and we request your partnership in assisting Merrill Lynch achieve the mandated cost saving objective. Your support and co-operation is very much appreciated in this effort and in assisting Merrill Lynch meeting its goal of little or no interruption of work assignments.
As a valued Merrill Lynch partner, we are sure you understand in the current environment such actions are necessary for the health and sustainability of the firm. Your firm has benefited from Merrill in the good years and we appreciate your dedication in today's environment.
Please feel free to contact the Technology recruitment team if you have any questions regarding this message.
Regards'.
And Merrill Lynch might not be the only firm considering imposing pay cuts on IT contractors, as our sources advise that other firms may be about to follow suit. One recruiter told HereIsTheCity: 'Firms like Merrill Lynch always seem to go for the easy targets. They have ridden rough-shod over US subprime borrowers, fleeced shareholders, laid-off staff in their thousands, and now they appear determined to affect the livelihood of suppliers and make it difficult for IT contractors to earn a living during this period of economic uncertainty'.
Another said: 'We appreciate that times are difficult for firms like Merrill, but we are suffering too. It's stuff like this which may push many of us to the brink of failure - and where will Merrill Lynch get its IT contractors from then ? The way this has been communicated also smacks of arrogance. Merrill could have called us in to a meeting and got one of its senior managers to explain the position face-to-face. We wouldn't have liked it, but at least it would have given us the impression that they really understood our position too. Instead, the firm chose to send out a 'take-it or leave-it' e-mail leaving us with little time to plan and no room for manoeuvre'.
Our margin has been slashed
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