Shell tells its contractors to accept 12% rate cut

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Shell tells its contractors to accept 12% rate cut

Posted Jul 8, 2009

Following recent rate cuts at major companies such as BT, Fujitsu, and Lloyds Banking Group, now oil giant Shell has told its contractors that they must accept a 12% contract rate cut or lose their jobs.

According to an internal memo seen by Contractor UK, Royal Dutch Shell has told contractors across its entire operation that all day rates are to be cut by 12%. Personnel who aren't willing to accept the cut are expected to be shown the door.

As more and more job cuts are announced nationwide, it is perhaps unsurprising that businesses of all sizes are rapidly 'downsizing' their IT staffing levels in order to keep operating costs in check.

Initially most rate cuts were confined to the banking sector, but now they have spread to all parts of the economy. 'Take it or leave it' ultimatums to contractors are increasingly becoming the norm.

Despite a recent announcement from the BCC which suggests that the worst of the recession is over, unemployment traditionally lags the economic recovery by a significant period, so future across-the-board rate cuts are expected to continue for some time yet.

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