Virgin Media slashes IT contractor rates

Virgin Media has cut its IT contractor rates by 15 percent.

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Virgin Media has cut its IT contractor rates by 15 percent.

On 5 April, the cable giant told 400 IT contractors to lower rates of more than £300 a day by 15 percent or face the chop, a report by Contractor UK said.

A Virgin Media spokesperson said: "We regularly review the arrangements we have with suppliers to ensure we are getting the best value from these relationships."

According to Contractor UK, Virgin Media had also threatened to terminate contractors last year, which led to IT contractors agreeing to reduce their day rates by 10 percent.

The latest move by Virgin Media follows the company’s "strong" Q4 2009 results, released in February, which showed a 3.3 percent increase in revenue to £980 million.

The company also announced two years ago that it would cut 2,200 jobs by 2012.

Meanwhile, Siemens’ BBC IT contractors voted to accept a new pay increase yesterday, averting strike action threatened by members of the Bectu media union.

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