Lloyds Bank makes IT Contractors feel the credit squeeze

An email sent to IT contractors by Lloyds Banking Group in June revealed that their pay is being cut by 15%. According to the Computer Press, the bank told contractors to accept the offer or leave. The email 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’.” 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. Lloyds is also making IT staff redundant. The bank has taken on billions of pounds in loans from the government and has set itself tough cost-cutting targets. So the credit crunch rumbles on and on and on. Still, it’s a great time to be negotiating with IT suppliers. They must be getting used to the comment: ‘This is a tough economy and you’ll need to do better than that if you want us to sign a new contract with you’.   

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