Deutsche Bank the latest to enforce 10% rate cut

Deutsche Bank are the latest to declare an across-the-board 10% rate cut for all IT contracting staff. In what has become a summer of rate cuts, Deutsche Bank join the list which now includes Hewlett Packard, Citigroup, Ericsson and Credit Suisse First Boston. Earlier this summer, British Airways also announced plans to dispense with over 150 of its contractor workforce.

One of our visitors emailed us last week with this story: "Through the management agency that Deutsche Bank use in London, recruitment agencies in London received a letter intructing that a 10% pay cut will be enforced upon contractors employed by Deutsche Bank, effective from the 15th September. If contractors did not indicate their acceptance of these terms by the 14th September, the contractor would then be issued with a termination notice of 2 weeks."

The contractor, who wishes to remain anonymous continued: "Contracts should be re-negotiated at the time of renewal and not mid-term as has happened twice already."

The rate cut was initially confirmed during a phone call to Deutsche Bank's London-based management company, although full details were not forthcoming. We hope this recent run of rate cut decisions by major contractor users does not encourage other corporations to follow suit.

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