Following Lloyds TSB'sdecision to cut UK IT contractor pay by 15%, Royal
Dutch Shell has made a similar take it or leave it offer.
The oil company has offered UK IT contractors new deals with a
10% pay cut. If they turn down the offer they will have to leave,
according to a report on
Contractor
UK.
According to the report, an internal memo last month said that
new and existing IT contractors would have pay rates cut by 12%, or
face termination or their contract.
Last month, Lloyds sent an e-mail to IT contractors which gave
them until 20 July to accept the 15% pay cut or leave.
One recipient of the e-mail said, "All attempts to negotiate
around the imposition of the cut were met with: 'take it or leave
the bank on notice'."
Lloyds said that it was bringing the rates in line with the
overall market.
In the e-mail 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.