We reported on Tuesday that, in these difficult times, Merrill Lynch is imposing an 11% pay cut on IT contractors, although the firm doesn't appear to be the only one.

The Register has now reported that Barclays Capital is instituting a 10% cut (the firm's press office didn't return our telephone call on this subject, so there's a good chance that it's true), and Deutsche Bank is also thought to have imposed a similar cut.

Here are a few of your comments on this subject:

1. 'Investment banks treat temporary staff like supermarkets treat farmers - disgracefully'.

2. 'This is a 'big fish eats little fish' world - and investment banks are 'big fish'.

3. 'I have no problem with recruitment agencies being squeezed by the larger corporations. It's common for agencies to take substantial margins. I feel that agencies should absorb these cuts. If not, perhaps firms like Merrill Lynch should deal with the contractors direct and just cut out the middle men'.

4. 'A typical margin these days for a recruitment firm on a PSL is 10%. To absorb pay cuts in the region of 10% would mean going out of business'.

5. 'Margins are already very low when you work for the large investment banks. To suggest that recruitment firms take the hit is ridiculous - we will already suffer as our margin on the amount of the pay cut will now be lost'.

6. 'Contractors get their annual bonus built into their daily rates. Bonuses will be down this year, and permanent staff will see their compensation cut at year-end. The contractors are just taking their pain at a different time and in a different manner - but it's the same thing'.

7. 'Having seen numerous IT staff switch to contracting for the money, I'm glad that it has now come home to them that there are benefits for those of us remaining on the permanent payroll'.

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