CEPU Telserv: CEPU Bulletins

CEPU Bulletins

Telstra general

20/09/2009
E-Bulletin #18 - Telstra can afford to support EBA workers

1. Telstra can afford to support its EBA workers
2. Federal Government’s proposals re: Telstra
3. Breakthrough on Optus Agreement
4. Contracting NGO Victoria
5. CEPU win on ECA underpayment – superannuation
6. Service Blitz points value change
7. Telstra loses another appeal over service pit incident
8. Asbestos legal case helps families
9. Rat inhalation study underpins need for precaution on nanotubes
10. OK for some!
11. Company tax rate cuts?
12. Vale Norm Champion
13. CEPU Stalwarts Move On!

1. Telstra can afford to support its EBA workers

Telstra pay offer was handed to the unions at the EBA talks on Wednesday, 16th September. At the meeting the unions raised concerns with the proposal and the dangers of putting it out to the employees.

Employees should note that there is no back pay, a sign on bonus of 2% which does not increase salary and a performance bonus which only some will get.

The unions presented our concerns as follows to the Telstra negotiators:

• The economic recovery appears quicker than expected.
• Telstra’s latest annual profit of $4.1 billion is amongst its highest ever, i.e. up 10.3%.
• Labour costs dropped by $27 million in 2008/09 with revenue per employees growing 16% in the same period.
• Telstra broke off the talks and created the delays in pay and conditions for EBA employees.

The CEPU will be re-evaluating all options including political and industrial in responding to this Telstra inferior proposition. The response from members across Australia has been unanimous. Not good enough!

2. Federal Government’s proposals re: Telstra

Whilst the CEPU is still examining the fine print on this proposal, the impact on Telstra through either structural or functional separation could see thousands of jobs in the nation’s major carrier come under intense pressure. With revenue streams expected to face significant strain we are also concerned about what this will do for employment conditions. There is not much experience to examine if you want to see what the consequence or benefit is of functional or structural separation. In fact European regulators in assessing similar reforms have argued that the employment effects must be taken into account before undertaking such moves. We refer members to the latest cepu@work journal article which reflects CEPU concerns. The CEPU has also raised these concerns in response to the Government’s call for submissions and comment on the regulatory reform process.

3. Breakthrough on Optus Agreement

Following weeks of talks with the company, CEPU officials are recommending a ‘yes’ vote on the Optus Employment Partnership Agreement (EPA). The CEPU negotiated changes to the Dispute Resolution Procedure to include the services of Fair Work Australia for Arbitration and Conciliation.

Employees can now be represented by the CEPU at the first stage of a problem which has been a difficulty in the past. Under previous circumstances employees could only get assistance at the final stage at which time it was too late to influence the outcome.

Parental leave is up from 8 weeks to 12 weeks and paid so that it attracts leave accrual. Redundancy pay increased. Consultation on major workplace change improved with the right of employees to be represented by the CEPU. Clear and definite guidelines on sick leave with 10 days per year and accrual of unused sick leave. New purchase and cash out provisions on annual leave.

4. Contractiing NGO Victoria

The CEPU has sought discussions with Telstra regarding work being contracted out in Next Generation Operations. An Indian company called WI PRO and its employees have been engaged to perform work in the NGO area, work currently performed by Telstra employees. We understand that it is Telstra’s objective for WI PRO staff to perform the full range or at least a wide range of the Telstra employees’ functions. At the same time members have advised the union of 37 redundancies in this area.

Telstra proceeded down this path without consultation with the CEPU and it raises suspicion about the company’s bone fides with respect to the use of overseas staff on Section 457 visas. Employers must train Australian workers, particularly young workers so that they are capable of doing skilled work. Where genuine skills shortages exist they should be filled by permanent migrants at the going Australian wages and conditions.

Whilst Telstra is claiming no decisions have been made with respect to redundancies, the CEPU has warned that the union will not stand idly by whilst employees are affectively replaced and positions artificially made redundant.

5. CEPU win on ECA underpayments - superannuation

ECA members had contacted the union regarding underpayments of the ex-CSS productivity super payments. Employees had their super payments calculated at 2.6% as opposed to 3%. There is obviously a net reduction of the company rate in the payment. Telstra in response to the union indicated that the error was caused by a payroll system change required to facilitate the introduction of salary packaging arrangement. Following the CEPU representations, the issue has been resolved and payments will be backdated and were available in the pay period of 16th September 2009 for our ECA members.

6. Service Blitz points value change

Telstra has unilaterally changed the value of Service Blitz points to the detriment of our members. Service Blitz was initially implemented within the Service Delivery I&M field workforce. In late 2008 Service Blitz was extended to the C&M field workforce, the points value were initially aligned with the I&M employees. Subsequently Telstra has decided to change the value of the points for the C&M employees.

Given that Service Blitz is a non negotiated performance pay system, employees are unable to influence these changes. This example highlights the dangers of allowing the employer to completely control the performance pay system without any checks and balances or the ability to appeal the process.

7. Telstra loses another appeal over service pit incident

As previously reported, a member of the public who, while carrying her 5 month old daughter stepped onto and fell onto a Telstra pit lid located in the footpath. The child was taken to hospital and admitted. Comcare pursued Telstra regarding this matter and concluded Telstra had breached Section 17 of the OH&S Act for failing to have adequate inspection, maintenance and repair systems in place to manage risks to third parties associated with damaged pits and pit lids. Telstra appealed to the Federal Court against Comcare; however, in December 2008 Justice Middleton found against Telstra on all counts.

During the proceedings the court was told nine incidents involving people falling into or over pits and/or pit lids were reported to Telstra in the 12 months leading up to the child’s injury. Other than the incident involving the mother and child, Telstra did not notify Comcare of any of the incidents. It tried to withdraw its notification of the dangerous occurrence a day after it notified Comcare, but to no avail. On 31st August 2009 the full Federal Court dismissed all grounds of Telstra’s appeal against Justice Middleton’s decision and ordered costs in favour of Comcare. What’s next Telstra, the High Court?

8. Asbestos legal case helps families

An appeal by Caltex Refineries against a finding that it was liable to pay damages to a woman who suffered mesothelioma after washing her husband’s asbestos-contaminated clothes for 27 years has been thrown out by the NSW Appeal Court. Beverly Stavar, 70 has convinced the court she should be able sue Caltex from the time her husband, Frank, started working on construction of a refinery in the Brisbane suburb of Lytton in 1964. Caltex argued that it had taken over the site of the contamination in 1995 and should not be liable.

However, the court found that the refinery group had sufficient knowledge of the asbestos contamination, going back to the 1970s. The decision means Mrs Stavar can sue Caltex as the occupier of the site where the contamination occurred. Asbestos victims advocate the lawyer, Peter Gordon, said the case was an important step in the development of consumers’ rights in relation to asbestos which sounded a warning to other companies about their potential liability posed by the deadly substance.

9. Rat inhalation study underpins need for precaution on nanotubes

A 90-day inhalation study of the effects of multi-walled carbon nanotubes on rat lungs has shown adverse effects, including increased lung weights and lung inflammation. The adverse effects occurred at every dose tested, including 200 times lower than generically deemed to pose high concern through the United Nations’ Globally Harmonised System of Classification and Labelling of Chemicals. The author’s, who work for BASF Germany, wrote that the results “… demand strictest industrial hygiene measures for handling these multi-wall carbon nanotubes.”

Nanotubes and Nanotechnology is used extensively throughout the electronics industry. The CEPU is supporting the ACTU campaign to have mandatory registration of commercially used nanoparticles and mandatory notification to workers.

10. OK for some!

They could afford to quit: 14 chief executives who left the top 100 listed companies last year received an average $5.7 million in termination payments, a total of $80 million.

11. Company tax rate cuts?

The Tax Review panel has recently began to prepare its final report for the Treasurer. If recent press reports are to be believed a cut to the company tax rate is on the cards. CEPU delegates to the recent ALP National Conference supported a motion raising concerns about any further reduction in company tax rates.

There has been no case presented that the current 30% tax rate is rendering our economy uncompetitive. In fact our tax rate is much lower than rates in comparable countries like the US, Japan, France and Canada. A cut in tax rates for companies could do real damage to undermine efforts to rebuild Australian vital infrastructure after years of neglect. A convincing case for reducing company tax has not been made.

12. Vale Norm Champion

We regret to advise of the passing of former WA ATEA Assistant Secretary Norm Champion. Norm was employed by Telstra and its predecessors for some 50 years. During the mid 1970s Norm worked full-time in the Branch Office, but served in various union positions for some 25 years of his working life. Our thoughts go out to Norm’s family and friends.

13. CEPU Stalwarts Move On!

Julia Armitt has resigned from the NSW T&S Branch to take up a position with the Financial Services Union. Julia jointed the CEPU just over 3 years ago and completed the ACTU Organising Works Programme before becoming a Branch Organiser. Members will remember Julia from the Your Right @ Work Campaign which resulted in the removal of the Howard Government. Since 2007 Julia has been involved in the Telstra EBA campaign, recruitment and organising in Optus.

Steve Dodd is the current Assistant State Secretary of the NSW P&T Branch. Steve has been a member of the CEPU for 35 years holding various full-time and part-time positions both at the State and National levels. Steve’s background is in the Lines area but he has also held key positions at the Promotional Appeals Board. Steve played a leading role in the then AIRC fighting job cuts in Telstra.

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