London - Bank of America Merrill Lynch advised its temp / contractor staff Friday that rates of pay were to be reduced by 10% across the board.
BofA ML joins Royal Bank of Scotland, Barclays, Credit Suisse and a raft of other firms which have taken the axe to contract labour rates in recent months, but some firm staff are a little miffed that they have just four business days notice to agree to the new conditions, or their contract will automatically finish at the end of the year.
One angry BofA ML contractor told Here Is The City: 'We don't blame the firm for taking an axe to our rates (given current market conditions), but many of us are angry that we have only been given four business days to make a decision. And doing this just before Christmas really stinks!'.
'In the final analysis, of course we'll all sign up - but after Christmas, my main priority is to get another contract role somewhere else as quickly as possible'.
Another banker said: 'It's no use getting angry and throwing your toys out of your cot. Bank of America Merrill Lynch looks like it was one of the last remaining holdouts. Contractors should just be happy that their rates weren't cut a lot earlier in the year, like they were at several other leading firms. And no-one is indispensable. I'm sure BofA won't give a fig if some of the contractors left'.
Here's the memo:
'Following a recent business wide review, driven by the current economic climate, Bank of America Merrill Lynch has taken the decision to apply a market correction to contractor and temporary worker pay rates.
This adjustment is not a reflection of the quality or value of your contributions to date, but a response to current market events and our client’s continued focus on cost management.
As a result, this letter is formal notification of a rate change to your contract for services at Bank of America Merrill Lynch.
You will remain on your current rate until 30 December 2011. Effective 31 December 2011, your pay rate will change to £**.** per Hr. This represents a 10% reduction to your current rate.
To confirm that you accept the amended contract between yourself and xxxx Specialist Recruitment, please email xxxxxx by 5pm on Thursday, 15 December.
A new contract effective from 31 December will be generated upon receipt of your acceptance.
Should you choose to decline these revised terms, please confirm your non-acceptance by 5pm on Thursday, 15 December 2011 via email to xxxxxx, or in writing to the above address. If you choose not to accept this change to your current terms and conditions, your assignment at Bank of America Merrill Lynch will terminate on 30 December 2011.
Failure to respond by 5pm on Thursday, 15 December will also be deemed to be non-acceptance and will result in your assignment at Bank of America Merrill Lynch terminating on 30 December 2011.
Please direct all questions relating to the above to your agency. Your Bank of America Merrill Lynch assignment manager is aware of the details of this communication.
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