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Barclays Capital forces IT contractors to take 10 percent pay cut
...because everyone else is doing it
By Anh Nguyen | Computerworld UK | Published 17:01, 09 November 11
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.
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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.
