Unethical practices by prime vendor


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Hi,

So I worked for this Client A for about 5 years before moving to Client B (due to disagreement on compensation terms), after a year, I was asked by Client A to join them back on my terms for rate and role that I asked for. All was good.

The model is EVC where we have prime vendor between client and my employer. 

With the current pandemic situation, the client announced a 4% pay cut for many contractors. Including me. However, the prime vendor doesn't want to lose any money in this and is forcing us to take an 8% pay cut so that they can cover their personal losses. This prime vendor is notorious for such unethical work practices and gets away with things like this without any issues. 

I am really fed up with them and want to know what are my options here? How can companies like these be taught a lesson so that they don't act like the blood-sucking parasites? 

I would be all up for taking legal actions if that's possible or and the only path to get back to these suckers. 

Any advice will be greatly appreciated. 

Thanks in advance. 

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You have no options. You are employed by your employer. You need to get paid by your employer. Stuff with a middle vendor is none of your business. Your employer would be the only one who could do stuff based on the contract your employer has with the vendor.  You need to stay out of that.

And next time, stay away from consulting stuff, in particular with middle vendors.

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I do understand your pain. But there is nothing unethical about deciding to do a pay cut. They are running a business and can decide how much to pay you. You can take legal action if they are not paying you on time.

You should take this up with the client and mention that the prime vendor is not treating you well and if there is an option to move to a different prime vendor.

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@User099

I am completely ok with the client doing the 4% pay cut across the board. An additional 4% that the prime vendor decided to impose on me and my employer (total of 8%) is what I feel is very unethical. 

Thank you for that suggestion. I will talk to my manager at the client site to see if something like this can be done. 

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1 hour ago, jivinp said:

@JoeF

Does this mean prime vendors can cut my pay even without getting any such instructions from the client? 

Your pay comes from your employer. You NEVER get paid by any middle vendor or client, and therefore your pay is never cut by a middle vendor or client.

Depending on their contracts, middle vendors or clients can of course negotiate payment changes in contracts, but that's between them and your employer. The contracts have nothing to do with your pay.  In particular, you are NOT getting paid a percentage. You have to get paid as per the LCA, and the LCA never shows a percentage. You got a copy of the LCA from your employer, did you? Look up what's listed as your salary there.

Edited by JoeF
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Isnt that dependent on the Contract between your employer and the Prime Vendor? How is it unethical from a legal perspective  if your employer is in agreement with the contract( or a contract amendment which I assume the pay cut will be)? 
 

If you are complaining about moral ethics, then not much you can do about it except to not work for such companies. 

Edited by Mav777
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On 7/2/2020 at 2:01 PM, jivinp said:

@cap-gap

Am I doing anything ethically or legally wrong by working in EVC model? The answer is no.

If you do not want to address the question and only troll, by all means. I am sure you have enough reason to justify your ignorance so good luck with that! Peace.

It seems YOU are the one who is ignorant. You are getting paid by your employer. Absolutely nothing a client or middle vendor does affects you. So, what's your problem???

Why do you even care about what the client or middle vendor does???

Does your employer not pay you correctly? Then file a complaint with DOL against your employer.

That's all there is to it.

Edited by JoeF
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On 7/4/2020 at 12:16 AM, JoeF said:

It seems YOU are the one who is ignorant. You are getting paid by your employer. Absolutely nothing a client or middle vendor does affects you. So, what's your problem???

Why do you even care about what the client or middle vendor does???

Does your employer not pay you correctly? Then file a complaint with DOL against your employer.

That's all there is to it.

Thanks for your reply, again. Not sure if you have ever worked in the EVC model or have you ever negotiated your own rate before. 

In my case, the client offered a role to me directly by reaching out to me. And because the client does not sponsor a work visa, they have a contracting house (prime vendor) who we (me and my employer) have to go through. In my case, I (not my employer) negotiated a rate with PV. PV negotiated rate with the client, we all agreed and signed-off.

So yes, at any given time, client and/or PV 'adjusts' (be it increase or decrease) the rate, it directly impacts me because such an adjustment would translate to how much my employer is getting paid from them and eventually the paycheck cut to me. 

PV's can keep their cut on the rate I have negotiated. If they come back after negotiations and change my rate at their own will without consulting the client or getting such instructions from the client then it's unethical. Simple reason being, I work for the client. The client did not hire me because of PV or my employer but for my ability and past performance. They decide if I deserve a pay cut or pay increase and how much. Not the PV. If the client decides a 4% cut then PV, employer, and me, we all SHOULD take a 4% cut on whatever each of us is making in the process. That's only fair.

Please do not tell me about 'they have a business to run' and all that jazz. There is always the right way of doing business and PV's actions are not aligned to that in my case. All I was asking with my post on this forum is to whether there can be anything done about such malpractice. But based on the responses from the people here, looks like they have their own agenda against EVC model and people working in it. Or simply lack understanding of how the whole system works or should work. 

Having said that looks like not many people here understand what's the issue here. 

Appreciate everyone's help. Mods can close this thread. 

 

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