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Shell Cuts Contractor Pay 12 Percent

Posted by Susan Hall Jul 8, 2009 11:20:20 AM

Royal Dutch Shell has become the latest UK-based company to issue a pay-cut ultimatum to its IT contractors, reports The Register. The oil company has said it will sever their contracts unless they accept a 12 percent pay cut.

 

That story says that by April 2008, Shell had outsourced most of its IT and telecom work through three deals worth $4.2 billion over five years with EDS, AT&T and T-Systems. It's not clear, though, that these are the contractors in question.

 

A spokesman for IT recruitment firm Jenrick CPI is quoted on Contractor UK saying more than half of its clients within the past three months have said "take it or leave it" to contractors after cutting pay 10 to 20 percent.

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