Rate Reductions

[monkeyrhythm]

Has anyone been hit with a request for a rate reduction mid-contract recently? I know many of the big service providers imposed rate cuts at various times over the last 18 months but I've not heard anything recently.
The reason I ask is I've just had a call from my agency trying to negotiate a hefty one....

[cojak]

I had a 'request' last year mid-contract on a take it or leave it basis. As a specialist on the programme I declined and publicly started plans for handover to whoever wanted my contract.

They quietly withdrew the request.

It depends on how much leverage you have and how easy you'd be to replace.

[MonzaMike]

client or agency

Have had this a couple or times but both were clearly company wide cuts imposed by client.

It will be common knowledge if this is affecting everyone.

Other option is that your agency are trying to sh**t you.

What % are they trying to cut by?

[monkeyrhythm]

20% (ouch) but it's negotiable and/or I can stick two fingers up. It does appear to be company wide and no, I don't think in this instance the agency's trying to stiff me.

[northernladuk]

I had a 10% at Barclays last year which we all did on the PSL. I did hear that at least one guy on a more specilist books didn't have it applied but don't know if he negotiated it or not.

I tried to push back but got a blanked and 2 of the people that walked because of it didn't get it reversed either.

To put it in context though they walked all contractors offsite 3 months later so they weren't messing about when they imposed it.

[BlasterBates]

Yes indeed big "Ouch" ....focus on finding a new contract, an offer in the hand is the best form of resistance.

[TestMangler]

Had one in July last year. 10% cut (some others were 15% and 20%) from HBoS via Hays.

I walked along with a couple of others. Only the pussies stayed

[Scrag Meister]

I had a 15% cut, but that was way back in Dec 2008, knew it was coming by October (Investment bank).

Was a real p1ss off because I'd had a 12% rise in the May prior, lasted 6 months.

My thoughts were 85% of something is better than 100% of nothing.

[Saddo]

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.

[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.