Barclays Capital forces IT contractors to take 10 percent pay cut

Barclays Capital has forced IT contractors and temporary staff to accept a 10 percent reduction in their rates, a leaked document has revealed.

The move is to “re-align” contractor rates with “current market conditions”, which are lower because “the majority of our competitors implementing similar initiatives”, the investment banking division said.

The temporary staff have been told that the rate cut comes into effect on 5 December and that they have until Friday to decline the offer, according to The Register, which has seen the leaked information.

“Should you confirm your non-acceptance by Friday 11 November 2011, then please accept this communication as notice on your current assignment at Barclays Capital to finish on Friday 2 December 2011, or on your current assignment end date if sooner,” the notice said.

In addition, staff have been told that they must take a 10-day holiday – including the bank holidays – before the end of December.

In September, rival investment bank UBS also issued contractors with a 10 percent reduction in pay ultimatum.

Last month, meanwhile, RBS imposed a technology spending freeze and told all contractors and technical specialists to take a “mandatory” two-week vacation from 19 to 30 December 2011.

Barclays Capital had yet to respond to a call for comment at the time of writing.