Barclays IT contractors in pay cut

By Rob Virtue on July 31, 2008 11:06 AM |

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BARCLAYS has started a cost-cutting scheme which will see IT contractors paid 10 per cent less.

The bank, based at One Churchill Place, claims it was paying the workers too much.

Contract staff have been given until August 31 to take the cut, otherwise they will leave the company. The decision was made by Barclays global retail and commercial banking business.

Spokesman Rob McIvor said: “We did a review and discovered we were paying higher than the market rate so we have adjusted that accordingly. If the contractors don’t want to work at that rate then they will go elsewhere.”

The news comes just a few weeks after Barclays cut 1,800 jobs in its IT sector.

Back in May, Barclays Capital, the investment banking division of the group, told contractors they would have their pay cut.

There was some good news for Barclays contractors, however, with bosses agreeing to beat Boris Johnson’s proposal for the London Living Wage. Cleaners are among those who will receive £7.75 an hour.