An email sent to IT contractors by Lloyds Banking Group
this month has revealed that their pay is being cut by
15%.
The bank has told contractors to accept the offer or leave.
The email, which has been leaked to Computer Weekly, was sent on
19 June and contractors were given until 20 July to accept the
changes to pay.
One recipient of the letter said, "all attempts to negotiate
around the imposition of the cut were met with: 'take it or leave
the bank on notice'."
Lloyds told Computer Weekly that it is bringing the rates in
line with the overall market.
In the email to contractors the bank blamed the "unprecedented
volatility and extreme market conditions" in the UK economy for the
cuts. "This adjustment is not a reflection of the perceived quality
or value of your contributions to date, but is a response to
current market events and Lloyds' focus on cost management," it
said.
Matthew Smith, director of UK regions at recruitment company
Harvey Nash, said banks have
generally paid contractors well so a 15% reduction could still
be better than other sectors. "This depends on the starting point
but it could be the case that a 15% reduction brings them in line
with contractors in other sectors."
Lloyds is also making IT staff redundant. It was recently
accused by union Unite of embarking on a strategy of "death by a
thousand cuts."
The bank has taken on billions of pounds in loans from the
government and has setitself tough cost-cutting targets.