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.
(Yes, this is probably legal. Essentially they're terminating existing contracts and creating new ones. But it stinks.)
There is, of course, much hue and cry. To me, it comes down to a fundamental question: Is Microsoft upper management taking advantage of dire economic times in the country to cut pay unnecessarily, secure in the assumption that people are too scared to leave and jobs are too scarce to find? If the answer is yes, then a protest is in order. See this website for more information about temps debating unionizing:http://www.msratecuts.org/site/
If, however, the answer is no -- if, despite its riches, Microsoft really does need to cut these costs, just as many other companies have had to, then fighting these cuts could have the result of hurting Microsoft and the agencies, possibly even driving some under.
I don't blame the agencies for passing along some of the cuts; despite their taking 30-40% of bill rates, I do believe profit margins are already slim.
I honestly don't know what to think. I don't know if the fact that Microsoft (and agency) upper management aren't taking voluntary pay cuts means that times really aren't that dire.
Thoughts? (No flaming, please; I know this is inflammatory stuff, but flaming won't solve anything.)