3rd March 2007, 07:53 PM
I think someone needs a shot of business realism in this - for RAOs the IFA requirement from April for net pension contribution of 6% above minimum pay rate and sickness of 1 month and 20 days holiday plus Bank Holidays means that for those who aren't already compliant there is already a basic net increase of at least around 10% in the cost of employing someone at Site Assistant level this year (and that is on an optimistic view that people won't clock up 20 days sick each per year).
You are then asking for a further 5% on top of this? This means an increase of 15% in base cost. You try hiking your rates by this amount and see the reaction from your clients.
The effect of this on tender prices for RAOs v non-RAOs is clear. RAOs, who are trying to take the 'virtuous' path, lose business to those who don't need to comply. Result for staff?
The threat of not being allowed to advertise on BAJR - not exactly the biggest deterrent in the world to the non-virtuous is it?
You are then asking for a further 5% on top of this? This means an increase of 15% in base cost. You try hiking your rates by this amount and see the reaction from your clients.
The effect of this on tender prices for RAOs v non-RAOs is clear. RAOs, who are trying to take the 'virtuous' path, lose business to those who don't need to comply. Result for staff?
The threat of not being allowed to advertise on BAJR - not exactly the biggest deterrent in the world to the non-virtuous is it?