Microsoft delays temp cutbacks |
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Microsoft delays temp cutbacks
Microsoft is postponing, by about two weeks, the planned cuts in the amount it pays employment firms for many of its temporary workers, a spokesman confirmed this afternoon. The cuts had been set to start March 2, but they're now slated to go into effect around mid-month.
The company is delaying the changes at the request of some of the employment firms, saying some of them needed more time to adjust their payroll and other internal systems to reflect the lower billing rates.
As reported yesterday, Microsoft is reducing by 10 percent the amount it will pay the employment agencies for workers on existing temporary assignments, and reducing the future target billing rate by 15 percent. Many of the agencies, operating on relatively thin profit margins, are expected to pass the cutbacks on to workers in the form of lower pay.
Some workers said the new date is March 16, but a Microsoft spokesman declined to give the specific timing.
Earlier: Full text: Microsoft's email on cutbacks for temporary workers.
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