Clydesdale Bank cuts IT contractor pay

Clydesdale Bank cuts IT contractor pay

Temporary IT workers at UK-based Clydesdale Bank have agreed to a 10% pay cut in order to hold on to their jobs, according to news site ContractorUK.

The bank denies issuing a blanket rate cut but some contractors have agreed to reduce their pay by as much as 20% according to the news report.
There is also some disagreement about just how broadly the pay cuts have been implemented. While the bank told ContractorUK that the development is part of its regular reviews into the number and pay of its temporary IT staff, some contractors have stated that entire teams have been hit with a pay cut and that the reduced terms have been written into their contracts for the next six months.
Clydesdale Bank is not alone in seeking to reduce the cost of wages to IT contractors. So far four other UK banks, including Yorkshire Bank, have taken similar steps in 2016.
Clydesdale, which was recently spun off from its previous owner National Australia Bank, was also a victim of the fallout from the recent Brexit vote and saw its share price on the Australian Securities Exchange fall by 30% in three days following the vote.
In more positive news for the Glasgow-based bank, it has just signed an agreement with a Glasgow School of Art graduate to design a new outfit for staff.

Comments: (2)

Gerard Hergenroeder
Gerard Hergenroeder - Payments Shark - Millersvile 20 July, 2016, 15:21Be the first to give this comment the thumbs up 0 likes

This is a natural consequence of changing demand and supply curves for labor. This is only the beginning of reduced demand for labor as a result of Brexit. In five years Brits will ask "where did all the good jobs, and times, go"?

Hitesh Thakkar
Hitesh Thakkar - SME - Fintech startups (APAC and Africa) - India 20 July, 2016, 19:03Be the first to give this comment the thumbs up 0 likes

It seems too early to leverage and take position.

Based on Today's Mrs May and Mrs Markel's statement, it seems EU as well as UK needs each other after the long Two year seperation process. Question is if roll back happens does it mean hikes in rates :)