Microsoft is reducing by 10% the amount it pays
employment agencies for supplying temporary workers, reports
Seattle-basedTechFlash
.
Microsoft's decision to cut agency rates will no doubt encourage
others to do the same. The move comes after the company
axed 1,400 staff last month.
When the decrease comes into effect on 2 March, temporary
workers will fear an impending wage cut as a result.
In a Microsoft memo dated 20 February, obtained by TechFlash,
Redmond also stated it would cut the target billing rate for future
temporary work by 15%.
Microsoft said the decreases were in response to the worsening
economy, and warned agencies that they can expect Microsoft
departments to keep a tight rein on temporary worker costs.
Microsoft said reduced or eliminated overtime is on the cards
for temporary workers, as well as a reduced number of total hours
worked.