Its NOT only the managers .. sadly. I have done a small bit of contract work by myself. Usually our normal rate for short term contract is about 800 euros per day (plus per diems, accom and flight tickets in business). But last time I have had couple of refusals, because couple older TRI/TREs in midsize bizjet have did exactly the same work for 500 euros per day! Outrageous... I'm absolutely sure, that they KNEW the current market rate, but due their personal abilities they only can find lousy contract job and their only sale argument is cheap price.. And thats the point, whats actually worriyng me.
If managers find that it's ok to go for the cheapest, then I think, that it's more correct to blame our colleagues, who do whatever it takes, to get the position.
And I'm quite happy, that in current economic climate, I have generous permanent contract which allowes me to do occassional contract work.. And I dont have to sell myself cheap to get food on my table