NAB cuts contractor pay rates

NAB cuts contractor pay rates

Summary: 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.

TOPICS: Legal, Banking

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 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. 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.

Topics: Legal, Banking

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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  • Great

    I wouldntstay, time to get rid of less skilled contractors that should not have been there in the first place.

    If you pay peanuts, then you will get monkeys.

    Good luck in the future NAB, I really hope all the rework on projects is not too hard on your bottom line.
  • Not a two way steet

    I expect when business was booming they did not propose and increase and when and if the market looks up will they pay more again ?

    Why does the cost for labor now drop but the return to shareholders is kept as high as possible ?
  • nab

    I assume that the CEO and other leeches will reduce their salary
  • It's quite simple, but maybe not fair

    Quick answer, a shareholder is a part owner of that company.
  • ACS as usual is useless

    from skills shortage myth to govt subsidised political rubish ie Gershin report,
    why isnt the ACS defending its members
    instead of grants for grads, who will loose thier jobs in couple year, and bending over for gov and business at expence of its members ie IT professionals such as NAB contractors.
  • Contractors are Mercenaries

    I am a contractor - I am a mercenary.
    I look for the best paying job, I pillage the buyer, I do the work, and I move on.
    I get experience in lots of different places - thats what makes me valuable.
    Contractors that stick in one place for ages are just lazy and NAB (and the other banks, insurance companies and particularly the Government - is full of them.)
    If you cant handle a 3 month rolling employment cycle - then you are not a real mercenary - you are a soft target.
    Don't blame the employer for your problems - blame yourself for not making yourself valuable to a consumer.
    And don't bag the ACS - sure they are a bunch of cardigan, sock & sandle wearing codgers who suck up to just about everyone that has a Degree and ignore people with real life experience - but at least they are out there spruiking on behalf of the IT workers - I dont hear any of the wilburs from the ACTU sticking up for us.
  • You are so sold on the prevailing world view you can see nothing else

    Of course shareholders own the company. But a company only works because of it's staff, management, banks, partner organisations and most of all the customers. It is not simply in the interest of owners that all the rest work well, it is the interest of all. The only reason the Shareholder is considered the lord and master is the Executive management likes the idea that they only answer to shareholders whose influence is a only a blunt instrument, once or twice a year and at AGM's then very limited. If a Shareholder leaves because the management are bad another takes his her place.
  • dear wilbur

    are you a member of the actu or a union? if not why should they stick up for you and your ***k everyone i'm ok attitude, wilbur?
  • Labor stooge right on cue

    Any poster that mentions your precious ATCU gets your attention. When will you accept that not everyone has the same view as you about the ACTU, and unions?? Last time I checked, we still live in a democracy and people are still entitled to express thier opinions. Your incessant rantings and victim mentality is straight out of the union organisors hand-book. I was a union member throughout the eighties and the one time I needed their help, the local organiser brushed me off....I resigned that day. Cheerio comrade.
  • EXEC's salary cut!

    Your kidding...right? Like out greedy politicians, they will be the last to even consider a pay cut. The company (banks) would have to go broke before that happens.
  • Free market

    It's a free market when it comes to contractor rates. NAB won't be able to cut rates below the market level. If they cut contractor rates, it's up to contractors to go somewhere else where the rate is to their liking. Simple really. If anyone wants protection of unions or whatever, become a permanent. Contractors are within their rights (and more than happy) to make hay while the sun shines, but the flip side is lack of security of income and employment in today's environment.
  • daily liberal stooge on cue again and now stealing my words in desperation

    get you own lines liberal stooge. oh sorry you liberals aren't bright enough to create your own.

    my daily liberal stooge comment of a week or so ago must have hit home, since you not only remembered it but now use it as your own.

    funny how you are normally the first to comment with your reichesque views, but this time i got in first and you laughably have the audacity to give me a lecture about peoples views.

    your time is coming to enjoy the dole queue too gestapo boy and when you do, you will go sobbing to the unions and i hope they see you for what you are and brush you (again).

    Back to liberal party hq with you now, auf wiedersehen and don't forget, sieg heil.
  • At least NAB have some class.... that they are honoring the existing Contracts by implementing the rate cut for renewals (effectively new contracts). To show just what a 'class act' they are, Bankwest recently gave their IT Contractors two days to accept a rate cut and new contracts or two week notice.
  • Contractors are Mercenaries

    Have to agree with MOtt. As a contractor, you have the option to go elsewhere if you don't like the conditions. The contractors that will be complaining are the contractors that might struggle with their skill sets in the market place, or view themselves more as "permanent" contractors who become comfortable and lazy in the one place.
    Mercenary contractors have no issue with this. We go in, do the job, get as much money from the client we can, and move on. Many of us have probably had 3mth contractors (through choice), and moved on. If NAB want to cut rates, then go elsewhere!