BT and IBM contractors are latest rates cuts casualties

BT and IBM are the latest companies to join the growing number of firms cutting their contractor rates by 10 per cent according to contractors working there.

[Edited] The BT press office has contacted UKTECH - see comments below.

BT confirmed that due to changes in market conditions, there have been rates cuts, but only for "the top 20% of contractors" - in other words those on the highest rates. BT were keen to state that 80% of contractors will not be affected. Any changes are immediate, with no future plans for further cuts.

[End edit]

Initially both companies have responded with 'No comment' to UKTECH's attempts to obtain official confirmation of the cuts. However, contractors at each of the client sites say their agents have made announcements to them giving them the choice of accepting the cuts or 'getting 4 weeks' notice.'

Confirmations of rates cuts have been coming in steadily since the end of July.

The list (confirmed either by the company or by contractors who work there) now consists of:

BT

IBM

Deutsche Bank

JP Morgan

Ericsson

CitiGroup

Hewlett Packard

Credit Suisse First Boston

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Richard Powell, UKTECH