Consequent to the worldwide financial downturn, JPMorgan has opted to decrease wages of its IT contractors by 15 percent starting November 1. JPMorgan is among the scores of banks who have cut rates to endure tough financial times. Other banks include BarCap, Deutsche Bank, Nomura International, Merrill Lynch and Royal Bank of Scotland. JPMorgan notified its recruitment supplier list through an advisory stating its plan to reduce wage rate. The note stated, "Due to prevailing market conditions, please be advised that JPMorgan Chase Bank ('JPMC') has made the decision to decrease its expenditure on IT contractor services provided to the IBTechnology ('IBTech') business unit." JPMorgan added, "In the event of a proposed refusal to agree to the reduction in charge rates either as a whole or for individual contractors, we will consider giving termination notice under the terms of the existing contractor's task order, at our discretion."
