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This is an update from the Telstra unions - CPSU, APESMA and CEPU - working together with the ACTU.

Download and share the full bulletin here (PDF).

Authorised by B. Blackburne CEPU, L. Persse CPSU, M. Butler APESMA, and J. Lawrence ACTU.

Telstra Tower photo credit: Prescott

A new way forward at Telstra

Real risks to your conditions

Telstra management has once again raised the prospect of dividing employees into "Part A" and "Part B" groups.

You may recall Telstra attempted to roll out an agreement with a "Part A" and "Part B" to call centre employees in November 2007.  Members overwhelmingly voted to reject the agreement because it significantly reduced conditions. The draft agreement included in Part B:

  • No certainty with start and finish times: could be anytime on any day
  • No guaranteed payment for overtime
  • Redundancy reduced to three weeks per year of service instead of four, and capped at 40 weeks for new employees.
  • No guaranteed pay increases

Telstra says your conditions are too generous

Telstra used early negotiations to tell unions that your current conditions are too generous.
In particular, they canvassed changes including:

  • Significantly reduce redundancy pay, including capping the amount for employees with long service
  • Cutting RDOs.
  • Abolish grandfathering provisions

Unions have argued vigorously against this in negotiations.

Unions win early breakthroughs

Recent correspondence from Telstra confirms we have won some important breakthroughs. These include, for current EA employees, retention of:

  • Redundancy pay
  • Grandfathering
  • Hours of work
  • Penalty payments
  • Leave arrangements 

Telstra has also now confirmed employees on AWA can move off them without disadvantage (after they expire). 

Unions propose new way forward: a constructive relationship to reduce uncertainty
A copy of the proposed Memorandum of Understanding (PDF)

Every time we talk with you and your fellow employees, you've made it clear you want:

  • Certainty about your rights at work.
  • Clarity about what the changes in Australia's workplace laws means for you.
  • Advice, representation and access to your union representatives.
  • A more positive and constructive relationship between Telstra and your unions.

To achieve certainty about the transition for Telstra employees as a result of the new Labor Government, unions have proposed a more constructive and cooperative relationship that is based on a Memorandum of Understanding (MoU) between Telstra workers and management. 

While management says they support a 'constructive relationship,' they have asked unions to withdraw the proposed MoU because of what they say are "legal problems."

Unions do not believe there are any legal problems with developing a constructive and cooperative relationship.

In fact, we have received support from the Deputy Prime Minister for our approach.

It is also wrong for management to suggest that unions are not concerned with ensuring the company grows and is able to provide good jobs through the roll out of broadband and other major industry developments.

Of course we want to see the company grow and provide decent, secure jobs for our members and all Telstra workers.

Let's move forward

Our legal advice is there is no significant barrier to Telstra signing the proposed agreement.

However, we are happy to deal with management's concerns by having the proposed agreement checked by an independent umpire - the Department of Employment and Workplace Relations.

If any provisions are a problem we will be happy to drop them.

But if there are no legal problems, we trust that management will then enter into the MoU. This should answer management's concerns and show whether the ?legal problems' are a real barrier or just an excuse to delay a more a cooperative approach.

Democracy at work: we want you to have your say

The Constructive Relationship/MOU we have proposed aims to clarify your rights at work. One of those rights is for you to have a say.

We think every single Telstra staff member should be offered the opportunity to vote on whether Telstra management embraces the constructive relationship.

We hope that Telstra management accept this invitation to put the MOU out for a company-wide vote.

Discussing a constructive relationship

So far Telstra has called off five days of scheduled EA negotiations. You may be scratching your head and wondering, "if Telstra supports a constructive relationship, it doesn't seem very constructive to refuse to meet!"

Hopefully our constructive proposals to get the umpire's decision and have a vote will enable us to move forward.

We remain ready and willing to negotiate. We have made clear we do not require agreement on the MOU to continue bargaining.

Critical issues still to be decided

We are keen to carry on addressing your concerns in negotiations, including:

  • Rights of employees on AWAs to move onto the EA when they choose, without disadvantage
  • Level of pay rise
  • Concern about establishing two classes of employees - the Part A/Part B argument
  • Superannuation and take-home pay
  • What a fair performance pay system should look like
  • Access to salary sacrifice for all employees

We will keep you updated!


Q and As

What is prohibited content?

Prohibited content is a hangover from the old Workchoices laws.  It restricts the parties from making a collective agreement that deals with a number of topics.  Given it was drafted by the Howard government, many of the restrictions relate to normal cooperative practices between unions and employers.  For example the Howard government laws restrict the ability to have training for union workplace representatives.

Why would the new government keep such laws?

Labor has made clear they will get rid of such restrictions. Labor's policy makes clear the parties should be free to reach agreement on most matters.

Labor is currently drafting the law to get rid of prohibited content. It is expected the law will be introduced to the Parliament before the end of the year.

Labor has already passed some interim legislation, the "Transition" act, to stop employers from making any new AWAs. The next act will address many other issues, including prohibited content.

What can we do before the laws change?

Prohibited content applies to registered agreements only.  That is agreements which are taken to the industrial relations commission and certified.

Telstra unions have not proposed the MoU be certified. We believe an agreement on a constructive relationship needs to be taken on face value, otherwise we don't have a constructive relationship!

So the only barrier that remains at law is a technical, legal argument regarding the construction industry code and guidelines.

What is the construction industry Code and Guidelines?

The construction industry code and guidelines is again a hangover from Workchoices.

It is not law, it is not regulation.  It is only a policy of government which is applied to tenders for construction and building projects.

The code requires the parties to have agreements in place which do not include prohibited content or otherwise are contrary to the Code and Guidelines.

The new Labor government has made clear it will review the code and guidelines to ensure they do not restrict sensible arrangements which encourage constructive relationships.

What can we do before the Code and Guidelines change?

We believe the current MoU is consistent with the Code and Guidelines. To ensure Telstra does not risk being in breach of the code and guidelines, we have proposed forwarding the MoU to the Department of Employment and Workplace Relations who provide advice as to whether agreements meet the standards.

The Department is the effective umpire regarding Code compliance.























































































































































 
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