When freelancers don’t demand their worth, they’re not just undervaluing their own work—they could be unintentionally helping companies keep rates low. This creates a cycle where businesses believe they don’t need to compete on pay, making it harder for every freelancer to earn a fair wage. It’s a question of whether your personal rate-setting affects the entire market.
A major UK investigation has fined big companies like BT and ITV millions for working together to keep freelance pay low and to avoid “bidding wars.” But what will freelancers do to make collusion stop?
Details of the case
In a landmark ruling, the Competition and Markets Authority (CMA) has fined five of the UK’s largest sports broadcasters and production companies a total of £4.2 million for illegally colluding on freelance rates. The investigation, which saw fines handed to BT, IMG, ITV, and the BBC, serves as a warning to freelancers on the importance of independent rate negotiation.
The CMA found that competitively sensitive information about freelancers’ pay was shared on 15 occasions, each involving a pair of the companies – Sky, BT, IMG, ITV and BBC. In most cases, the explicit aim was to coordinate how much to pay freelancers.
The CMA’s probe found that companies were sharing sensitive information about pay for freelancers such as camera operators, sound technicians, and producers.
Emails and WhatsApp messages revealed an explicit effort to “align” rates and avoid a “bidding war,” effectively stifling competition for talent. This behaviour, known as rate collusion, is illegal and can have a direct impact on a freelancer’s earning potential. Sky was exempted from a financial penalty after alerting the CMA to the practice and cooperating fully with the investigation.
The CMA said it looked at emails and phone messages on platforms such as WhatsApp to see what was going on. They reported what they meant by aligning on rates of pay. Here are some examples of exchanges they found:
Email to a competitor
“We pay our Studio Vision Mixers £(X) per day for a 10x hour shift.
Response
That’s exactly the same as we pay. Good to know we are aligned there.
Email to a competitor when asking them to share information about how much they paid for a particular type of freelance worker
When we raise rates, I always try to canvas opinion so as not to cause too much ‘market’ disruption.
Email to a competitor
On this occasion I think it sensible that we present a united front.
WhatsApp message to a competitor
We’re thinking some rates might need adjusting for 2022/23 but want to be aligned. Wanted to be clear we have no intention of getting into a bidding war just want to be aligned and benchmark the rates. Also sick of being told we are not paying what others are which I inherently distrust.
Information that gives an insight into a company’s strategy in the market (including when it comes to what it pays its workers, as in this case) is called ‘competitively sensitive information’.
When businesses share competitively sensitive information between them, this can make them compete less with one another, potentially leading to harmful outcomes for consumers, other businesses and workers.
How to negotiate your freelance rates
This case shows the power and necessity of a freelancer’s ability to negotiate their own worth. The CMA’s findings show that when companies stop competing for talent, freelancers’ pay stagnates. To combat this, you need to be prepared to advocate for yourself, especially since freelancers might be earning 30% less than they think.
Here’s why.
A client isn’t just paying for your time. They’re paying for your skills, your expertise, and your years of experience. They’re also not paying for holiday pay, sick leave, or pensions. Make a list of everything you bring to the table. Here are ways you can do that:
Do your research: Before negotiating, research the market rates for your skills and experience. Look at job boards, industry surveys, and connect with other freelancers to get a realistic sense of what you should be earning. Knowledge is power, and being informed allows you to justify your requested rate.
Emphasise your value: Don’t just quote a number. Detail the unique skills, experience, and value you bring to a project. Highlight past successes, testimonials and any special expertise you possess. A high rate is easier to justify when it’s tied to a high return on investment for the client.
Don’t be afraid to walk away: The most powerful tool in any negotiation is the ability to say “no.” If a client or agency is unwilling to meet your reasonable rate, be prepared to walk away. This shows confidence in your value and could lead to a better offer or readjustment to the assignment.
Negotiate for both hourly and project rates: For some projects, an hourly rate might be more appropriate, especially if the scope is fluid. For others, a fixed project rate can give you more security and an incentive to work efficiently. Be ready to discuss both options, including extra fees that could go above your duties (i.e. extra revisions, meetings, etc.).
