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IT contractors rates cut by Lloyds

27 June, 2009

Towards the end of June 2009 Lloyds TSB, the partly nationalised British bank, announced the downgrading of pay to its IT contractors, giving no option but to work for 15% less if they wanted to keep their contracts. This was the second time in12 months that the bank had cut IT contractors’ pay.

The extreme market conditions are blamed for the drop in pay. The bank has assured contractors that this is no reflection on the quality or value of their contributions.

A spokeswoman for the bank has advised IT contractors to hang on to their jobs as there are many others waiting to do them, and for less money. Her advice came just before Barclays announced that it would be shutting down its 2 centres in Liverpool, letting nearly 200 employees go.

According to an online resource, Mr. Harvey Nash from a recruitment company has said that banks have in general paid contractors higher than the normal rate, and this15% pay cut just brings them into line with other sectors.

During March it was reported by Contractor UK that IT specialists should focus on their particular skills and expertise to give them a competitive advantage as offering more specialised services would be favoured when the market changed.

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