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Thread: Recruiters get 25 per hour from government but pay 10 per hour to contract staff ?

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    Default Recruiters get 25 per hour from government but pay 10 per hour to contract staff ?

    I've learned of two cases of apparently excessive profits of recruiters supplying contract staff to government. An acquaintance who gets home help for an elderly relative told me that the home help woman is paid only €10 an hour out of the €25 an hour her recruiter receives from the government. This woman has to use a car for her home visits in the country.

    The second case was a pay cut from €15 an hour to €10 an hour for a contract translator I know,again a job requiring use of a car.

    Possibly this latter cut was due to government cutbacks but the recruiter did not say so. More likely,the recruiter is exploiting the heavy unemployment among translators.

    Opportunities for such excessive gross profit margins could also be due to the difficulty of complying with the typically complicated bureaucracy of bidding for government contracts. The civil service is so fearful of making a mistake in selecting contractors that it makes complicated rules which favour a minority of companies with the necessary expertise in navigating bureaucracy.
    Last edited by patslatt; 28th October 2012 at 02:57 PM.

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    Politics.ie Member Sister Mercedes's Avatar
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    Is the €10 euro an hour gross or net of tax, etc?

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    Politics.ie Member dizillusioned's Avatar
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    Quote Originally Posted by Sister Mercedes View Post
    Is the €10 euro an hour gross or net of tax, etc?
    I know for a fact, that the 10euro an hour in the case here, was gross. The person has sinced moved to another home help agency with better pay 15 per hour an better conditions of employment. Sometimes car payments are made in the new employment, the old employment gave no such car payments at all.

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    Quote Originally Posted by Sister Mercedes View Post
    Is the €10 euro an hour gross or net of tax, etc?
    Gross pay.

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    Quote Originally Posted by dizillusioned View Post
    I know for a fact, that the 10euro an hour in the case here, was gross. The person has sinced moved to another home help agency with better pay 15 per hour an better conditions of employment. Sometimes car payments are made in the new employment, the old employment gave no such car payments at all.
    I believe travel time is unpaid and if the person being cared for goes into hospital for a week or on holidays, the carer doesn't get paid.

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    What Govt taxes like Employers PRSI / Holiday pay etc etc is the Agency required to provide for ?

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    Quote Originally Posted by patslatt View Post
    Gross pay.
    Its gross pay and your figures would be correct.

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    Politics.ie Member Sister Mercedes's Avatar
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    Quote Originally Posted by dizillusioned View Post
    I know for a fact, that the 10euro an hour in the case here, was gross. The person has sinced moved to another home help agency with better pay 15 per hour an better conditions of employment. Sometimes car payments are made in the new employment, the old employment gave no such car payments at all.
    I temped for a while in the 90's, at a fairly high per hour rate, and my agency got a much smaller proportion of the fee than I did. Perhaps there are economies for scale for higher rates, but even still the case above seems very inequitable. After tax, the person is only getting about 20% of the rate that the employer paid.

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    Politics.ie Member wombat's Avatar
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    A mark up of €15 on €10 is excessive by any standards, 20 to 25% is usual for engineering, depending on the overheads of the pimp.
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    Politics.ie Member 'orebel's Avatar
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    Quote Originally Posted by wombat View Post
    A mark up of €15 on €10 is excessive by any standards, 20 to 25% is usual for engineering, depending on the overheads of the pimp.
    It was pretty standard for labourers in the construction industry during the boom.
    "It is important therefore that I clarify to the House that in the first instance there are significant monies within Anglo-Irish to take the strain of loan losses arising over the next three or four years, before State support is engaged." Brian Lenihan 15/01/09

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