What to think?

[keikaimalu]

Apparently, all agencies that provide temp staff to Microsoft are passing along part or all of a brand-new 10% cut in the rates Microsoft is paying those agencies. Agency temps working at Microsoft (not agency representatives, recruiters, or management) are taking enforced pay cuts

Comments

[singingnettle]

One of the points made on that site, although somewhat illiterately, is a good one: setting the precedent of changing pay rates mid-contract is dangerous and does indeed open the door to workers being hired at one rate and then having their rate adjusted downward. It nullifies the point of having a contract. It is also possibly illegal: it's coercion. People who refuse the pay cut will not be supported by the agency in getting a new contract; the non-compete clauses prevent other agencies or the company from employing them; and they will be denied unemployment benefits. Contractors don't have any viable choice in the matter--yet at the cost of living here, 10% can make the difference between making your rent and not making it. On top of the cut, some agencies have taken advantage of the situation to stop paying for or contributing to benefits.

For us, 10% means $800 a month, minimally...and for many of the agencies we've spoken to in the past week, add almost another $500 a month for medical insurance.

In the next month, I expect to see these cuts spread through the industry...merely because companies will take advantage of the fact that they are capable of forcing workers to take pay cuts.

This system is very badly broken, and I think it's past time we unionized...but contractors are prohibited from discussing unionization with other contractors or disclosing their salary to other contractors--it's an offense for which you can get fired and blacklisted.

Personally, as someone caught in this dynamic--I feel very trapped, and it is the last straw in impelling us to leave the area. We cannot afford to live here anymore.

[keikaimalu]

I'm thinking that site could be a useful gathering place for contractors even after the dust settles; I have a feeling the hard times are not behind us.

I'm also thinking about getting a hold of the new contract they want us to sign and taking it and my current contract to a lawyer, just to see what's what.

I'm sorry this has hit you so hard. We have a bit of a cushion, but it certainly won't last forever.

One thing, though -- it is against federal law to prohibit discussing unionization. Any agencies that tell us not to are flirting with lawsuits. And I certainly wouldn't let them stop me from talking about it, or about other forms of protesting.

[singingnettle]

There are a lot of things that are technically illegal, but when you're looking at losing your job for discussing your salary or job, it's not attractive to court that. The company can cite any reason or no reason for firing you from an "at will" contract. The reality is: keep mouth shut or get fired, blacklisted, and have to go to the expense of hiring a lawyer (and starting a suit that will get you barred from any job in the fishbowl that is the hi-tech community). Most people can't afford to do the latter.