Feeds

More IBM contractors get rates cut

Elan feels the burn

The essential guide to IT transformation

Another group of contractors at Big Blue have had their pay rates cut, this time via recruitment outfit Elan.

The company and Elan are remaining quiet on how much the rates have been cut by, but one anonymous source told The Register that it was by as much as 15 per cent.

"This seems ridiculous to us, when the majority of contractors are working on revenue earning projects, surely this ultimately will result in lost revenue plus IBM is bucking the trend when it comes to profits," said the source. "It seems more than a little harsh mid contract."

Just last month recruitment group Hays confirmed it was slashing contract staff rates at IBM. It also declined to comment on how many would be affected, but it was understood that a limited group of up to 300 contractors were involved, and not the entirety of IBM UK's contract employees.

An Elan spokesman told El Reg today that some of its contractors had been informed of rate cuts.

"This week technical subcontractors engaged on IBM business have been notified of changes to their daily rates," he said, echoing Hays' statement in March.

He added that Elan always tried to ensure rates were “fair and appropriate within the marketplace”.

We asked the spokesman if he could confirm how many contractors had been affected by the rate cut and by how much, but he declined to comment.

A person familiar with the matter told us that rates “hadn’t been cut across the board” but rather had been “limited in scope and specific” to some IBM contractors. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.