Report - RBS tells contractors to accept pay cut or quit

A unilateral 10% rate cut

Royal Bank of Scotland has implemented another 10% rate cut for thousands of contractors globally, announcing the move on Thursday – the day before the long Easter weekend.

eFinancialCareers reports that on 17 April, RBS told all its contractors globally across the group that it would be implementing a unilateral 10% rate cut and that they have a week’s notice period in order to decide whether to accept it, according to sources close to the situation.

This means that any contractors deciding against taking a pay cut will leave the organisation by Friday 25 April.

The 10% rate cut takes effect from 19 May for all contractors. Exemptions include anyone earning less than £250 a day and those supplied by consultancies. At the end of 2012 (the latest figures available), RBS employed 10,900 temporary staff.

An RBS spokesperson commented: 'We continually keep costs under review, in reaching this decision we have taken into consideration market day rates and those across the banking industry'.

To access the complete eFinancialCareers article hit the link below:

RBS contractors have four days to accept 10% pay cut, or quit

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