10 Percent Rate Cut
This article, about refusing a 10 percent rate cut, was posted as comments by a reader after one of our articles.
Would you have done the same?
Most contractors in the same position haven’t done so.
Turned Down Contractor Pay Cut
I turned down the 10% pay-cut and walked out.
I have insured my salary for the last ten years, and my insurance company agreed that the bank were in the wrong. So, they are paying me 70% of my contract rate in compensation. That’s until I find a new contract or for two years, whichever is shorter.
No sympathy for those who accepted cuts
Personally I wouldn’t have believed it.
But the first month’s compensation was in my bank account within 24 hours of making the claim.
Accordingly, the amount of sympathy I have for those who accepted the cuts is about the same size as their balls.
It does seem unbelievable – but possible.
Does anyone else have any experience of this?
Is it something that can be done?
It would scupper the big banks and others if IT Contractors simply said no to rate cuts. Knowing they could be on 70% of their previous salary for two years rather than 90% would help.
Laying Off Permie for Cost Savings
Of course it may mean that the banks would do the same as they did with the permies and lay some of them off to get cost savings.
That‘s the risk one takes.
Perhaps it is the flexibility in being able to cut contractors‘ rates that keeps IT Contractors in employment.
Would you accept a 10 percent rate cut or would you just have taken it and moaned and groaned about it?