NAB cuts contractor pay rates

National Australia Bank has asked some contractors, including technology workers, to lower their rates when their contracts next come up for renewal, as part of a cost-cutting drive.

National Australia Bank has asked some contractors, including technology workers, to lower their rates when their contracts next come up for renewal, as part of a cost-cutting drive.

"In the current environment we need to proactively manage costs — while retaining a flexible workforce and the skills we need," a spokesperson for the bank told ZDNet.com.au this week after confirming the move.

There was no "one size fits all" approach for most contractors, according to the spokesperson — with the bank only trying to achieve rates at the level to which it anticipated "the market to be in the future".

For some contractors, however, NAB has pushed through a general reduction in rates. ZDNet.com.au understands the level of this reduction was 10 per cent, but the bank would not confirm this detail.

According to sources, the duration of the contracts had also been reduced, with six- or 12-month contracts changed to rolling three-month contracts. It was believed that NAB had been looking to cut down on contractors so that it didn't have to reduce the number of permanent employees.

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