On the Line February 2000 1/2000 CCW BALLOT LOSS Telstra bosses get petulant over embarassing defeat Telstra refuse to release CCW figures Telstra takes union officials to court New CEPU website soon Executive salaries through roof as workers lose out UK operators win strike Union seeking better Optus OH&S deal Big legal win for workers over contracts and more .... New website for CEPU members by Ian McCarthy The NSW T&S Branch of the Union will soon have its own website. We have been interested for some time in improving our daily communications with our members through the industrial bulletins, of which we publish about 200 a year. The new website will therefore feature each bulletin all of which will then be archived according to the section of the industry that it is directed at. This means that each group of members employed by a particular company such as Optus or Plestel will have a dedicated section on the site which can be opened directly from the Home Page. Similarly membership groups in all of the major business units within Telstra will have such a section as well. We also hope that when the Union is conducting campaigns we will be able to update members on a regular basis. There will also be a full listing and details of CEPU membership services, contact details, who's who of officials and elected committee people plus we will also have a direct e-mail link to the Branch Office so that members can express their views on matters of the day. We will also archive issues of On the Line, our Branch magazine, along with photographs. There will be links to international and local labour movement sites including a number of overseas communications unions as well as daily news from mainstream media on issues of interest to telecommunications workers. At a later date we also hope to include a facility for applying to join the Union and for paying your union dues. The website is expected to be up and running in the next couple of weeks. We will inform members of the domain name in the near future. ENDS Reminder about CFW survey Members covered by the Telstra Corporation Customer Field Workforce Agreement were recently surveyed about extra travelling time and DIRECTOR problems etc and it is vital that these surveys are returned. The information in the survey is to be used to ensure the CFW agreement is not being breached and they can be either faxed to Gary Kennedy on 02-9281 9494 or e-mailed to Hyperlink mail to garyk@cepu.asn.au ENDS NDC bosses confused over ETT by Guy Robins Assistant Secretary NDC management have failed to understand the application of Excess Travelling Time and many members face the continuing loss of money unless the matter is cleared up very soon. In response to this problem the Union would like all members that have altered their ETT claims, at the direction of management, to immediately fax a copy of the correct form to the Union Office along with a copy of the original form management directed them to change. These changes arose when management directed that members could not claim waiting time on arrival at temporary stations, even though this time is already subtracted. The current NDC management do not seem to understand that ETT is the time spent travelling to a temporary station less the time taken to get to your usual station. When you subtract the usual station time from the temporary station time, the usual station time includes waiting time as well. It is now of course part of the thirty minutes, which is subtracted off total time travelled. The Union will continue to pursue this matter until it is properly resolved. It is a clear breach of the EBA and the Award and will not be tolerated by the Union. Members should fax copies of both forms to Guy Robins on Fax: 02 9281 9494 at the Union Office. ENDS Red flags used for discipline by Vivette Horrex The CEPU has received numerous reports from members in some Telstra Commercial and Consumer Customer Service Centres regarding the new process called red flags. From what we have been able to glean, a Red Flag is issued where the fault report may have been sent to the wrong area, or when incorrect fault codes are used. In some cases red flags are issued for non-compliance of performance objectives set down by Telstra i.e. average handling time on a call is too long with the result that workers are being threatened with disciplinary action if they have too many red flags issued against them. The Union believes that in many instances the reason for what management perceives to be non-compliance of work procedures is the result of unclear directions or inadequate training. These days there seems to be less time for formal training, whilst team briefs are proving to be a poor substitute. Many consultants are simply handed written procedures with little or no explanation and are expected to brief themselves in their own time. The question needs to be raised as to why individuals are been targeted and measured in this manner. There is little detailed information on the red-flag process. Telstra has not sought our agreement or seen fit to brief the Union on this process. Members are urged to report to the Branch Office any instances of discipline resulting from this process. ENDS CCW bosses get petulant over ballot loss by Ian McCarthy In a petulant display of managerial feeling over the CCW ballot defeat, management wrote to all CCW staff just before Christmas telling them, amongst other things, that they will not now get a 4% increase only 2% and that there will be no more negotiations with the Union for a better agreement. What a strange world it would be if employers had the right to simply stand up and say - we're not negotiating with you any more, so there! Unfortunately this childish, head in the sand attitude to industrial relations, which has been fostered by the Howard Government is starting to push up the number of industrial disputes occurring in Australia at present - rail staff, teachers, coal miners, iron ore workers, wharfies, power workers, auto assembly workers - all have major disputes on the boil at present solely because bosses think that they can simply walk away from their responsibility to take part in the collective bargaining process. This is not the case. As the BHP executives running the iron ore operations in the Pilbara have discovered, the legal process will follow you wherever you try to hide, after the workers themselves have made their stand clear. The same can be said for Telstra. Senior executives seem to think that unions should be limited to being a social club. That's not what we are here for. Thousands of CCW workers belong to the CEPU and they will not be hiding their head in the sand. This Union and our members reject Telstra's assertion that "there will be no further negotiation for a better Agreement or a better offer". The CCW staff voted against the paltry, mean, wage cutting offer included within the so-called Telstra offer, they did not vote against having an agreement. Telstra's position is simply empty bravado, an attempt to deal with the psychological offer of rejection and defeat. Members can be assured that there will be negotiations, there will be a better offer and there will be a full, complete and equitable pay increase on offer that will complement the 2% which was due from the last Agreement. The 2% isn't instead of a 4% increase, it was due anyway - now we have to negotiate a new agreement based on collective bargaining, not managerial stupidity. ENDS CCW staff say NO! to Telstra by Vivette Horrex Assistant Secretary The Unions as well as members must be pleased with the ballot outcome of the Telstra Customer Contact Workforce (CCW) Agreement. It was a positive outcome for the CEPU and its members with a very decisive 59% of all CCW staff voting NO. This has now resulted in the December 2% pay rise to staff under the existing Agreement as well as maintaining increment advancements and salary increases for new starters. The NO decision also protects a number of current conditions, which Telstra wanted to strip away with their CCW offer. Most importantly the decision maintains collective bargaining and the rule of law within call centres rather than industrial relations by management edict. The CEPU has urged Telstra throughout and prior to the ballot, to negotiate in good faith with the aim of delivering a fair and reasonable agreement for staff. This has not been Telstra's position. Since the ballot outcome the CEPU has been ready to go back to the negotiating table in good faith and resolve the outstanding issues. Some of these issues are: ¥ dispute with Telstra's application of Hay Job grading evaluation system ¥ benchmark job descriptions not agreed on between the parties ¥ no equal work for equal pays with CFW salaries much higher than CCW salaries, and graded and evaluated with same Hay points value ¥ market review surveys to determine future salary increases, not negotiated in Union agreements, also determination of salaries based on Call Centre market industry rates. ¥ operator/consultant conditions contained in EA 8.5.1 are not provided for in CCW agreement, which would have expired on certification of CCW agreement. ¥ current rostering arrangements for shift workers to be replaced with shift scheduling, and 7 days notice of shifts rosters. However, Telstra does not seem to want to negotiate any further with the Unions on the Customer Contact Workstream. All they seem to want to do is make idle threats to staff regarding their options and how workers need to be more productive and competitive. The current Enterprise Agreement runs out at the end of the year, so we need to start planning our negotiation tactics for the re-negotiations of that agreement. With the taste of the CCW negotiations and Telstra's attitude the next agreements will no doubt provide us with more challenges for the Union and its members. ENDS CCW BALLOT Telstra admit loss but maintain secrecy obsession by Ian McCarthy Branch Secretary Telstra management have experienced a huge defeat in their attempts to subvert the industrial relations system within the Corporation. The results of the November ballot amongst Customer Contact staff, finally announced on December 17, came as a huge blow to the self-confidence of a string of senior executives who clearly exposed their inexperience and lack of understanding about employee attitudes at the workface. The ballot arose from Telstra's decision to make an offer on a new agreement directly to Customer Contact staff - administrative staff, operators and management personnel. Negotiations with the unions had been going on for some time although we were aware that there had been a lot of foot dragging on Telstra's part. In fact the offer had been drawn up in secret for only days before it became public, management had denied to the union negotiators that they had anything to put on the table for discussion. Such a twisted strategy did not just fall from the apple tree but rather can be viewed as a test or even the thin edge of the wedge. Customer Contact is, if we are frank about it, one of the most conservative and least unionised sectors of Telstra. Although operators are well organised within the CEPU and have a history of taking industrial action, the same can not be said of the admin staff many of whom are not in a union. But the big attraction for management in holding this ballot is that the vote would include a very large proportion of management themselves. In short the make-up of Customer Contact staff made it a perfect area for testing the waters. When the ballot was announced - without any union approval or involvement whatsoever - we must admit that we could see a situation where the strength of the operators and unionised admin officers could be swamped by non-unionists and managers, the latter who would no doubt vote in force. We also discovered that the ballot methods would never achieve Australian Electoral Office guidelines. In fact to this day no official figures have been released. But we did our sums and got out there and spoke to our members. Of course we were helped in this by the extraordinary arrogance of management themselves. Their secrecy and lack of transparency was enough to convince some employees that something was being hidden from them and so they would vote No. Others took great exception to the patronising letter sent to them prior to the ballot. But crucially, how successful do you think an industrial strategy launch is going to be that involves thousands of workers being asked to take a wage cut at a time when executive packages and huge corporate profits are making regular news? Telstra have admitted that the ballot went against them 59/41. We don't know if that is a true figure because they are not releasing any details. So much for having a third party - Price Waterhouse Coopers - conduct the ballot. The continuing obsession with secrecy suggests that the figures when analysed, are much worse than Telstra are admitting. Yet some senior executives are talking to us off the record and we can report the following: ¥ the figures show that a proportion of middle managers voted No ¥ unionists were incredibly solid in their No vote ¥ the architects of the ballot have been carpeted by senior executives for their misdemeanours, including their naive guarantee that the ballot would get up. ENDS Telstra launches legal attack on unions by Dale Keeling Branch secretary Ian McCarthy is one of six union officials being sued by Telstra over the matter of lunch-time membership meetings held last November. Telstra is also suing the CPSU and the CEPU as organisations. On December 17, the very same day as the failed CCW ballot result was announced, Telstra filed a statement of claim in the Federal Court alleging that CEPU and CPSU officials engaged in industrial action contrary to the federal Workplace Relations Act. Specifically the statement claims that the officials breached the Act by encouraging members to stop work on Friday November 19 and that Ian McCarthy organised and conducted these stopwork meetings. He is the only official that attended the Sydney meeting at the Masonic Club to be named. No other official, although many attended, nor any of the 100 or so union members from Customer Support staff, have been named in Telstra's action. The five other respondents to the claim are Gerry Kandelaars the CEPU T&S Secretary in SA; Gary Carson T&S Secretary in WA; Stephen Jones from the CPSU National Office; Kate Coleman, the CPSU Secretary in SA; John Theodorsen, A/g CPSU Secretary in WA Telstra have in the past been extremely sloppy about their legal actions against individual officials and the selection here suggests that yet again this could be the case. The Union has engaged solicitors and barristers and intends to fight the matter vigorously. As members were merely attending a lunch-time meeting and there was no industrial action whatsoever, what we are talking about here is the simple defence of a worker's right to meet and to engage in discussion on issues of common interest in their own time. It is some 150 years since the Master and Servant Act dictated what workers could and could not do in their own time. The CEPU intends to defend the right of free speech, the right of privacy outside working hours and the right of workers to meet and discuss issues collectively. These issues are all fundamental to a modern democracy. ENDS Be prepared for EBA 2000 by Guy Robins In December of this year our EBAs expire and the Union will be negotiating a new agreement. The reason the Union will be seeking a new agreement is to have a set of laid down conditions that ensure reasonable working conditions for members for the next two years or more. For the Union it is also about salary conditions for the next two or more years, to ensure the current or a better standard of living. Members should always remember the Union is only as strong as its members, and it is only strong if the entire workforce belongs to the Union and stand together in a struggle to defend or improve our wages and conditions. During the next round of negotiations there will be extensive consultation with members on the things we wish to achieve in a new agreement, and the best way to achieve those goals. If you are not a member of the Union you will obviously not be part of that consultation and negotiation process. So, if you are not a member it's time to join the Union now and be part of maintaining proper wages and conditions in the telecommunications industry. ENDS TELSTRA CHALLENGED CEO's pay levels need to be reigned in by Ian McCarthy Tucked away in the corner of your daily newspaper a few weeks ago was the story of the pay rise granted to senior executives of National Textiles in very recent times. Whilst workers were being told that they had to go without pay a rise to save their jobs (as usual it didn't work), the company's executives were getting their noses in the trough and taking some very substantial increases. In Telstra we know that whilst top managers are calling for an extra effort from workers and trying to cut wages (as in the recent Customer Contact fiasco), they are reaping huge (and highly confidential) pay rises in shares, salaries and other perks. In fact looking throughout Australia today it is very easy to see that the trend is away from salary equity ideal of the 1970s towards huge payouts for senior executives who seem to come and go with extraordinary alacrity. The BHP and AMP CEOs, both of whom had poor performance records, were paid off with sums of $11 and $13.2 million respectively whilst redundant workers have been left high and dry. Corporations such as Telstra some years ago entered the international market for senior executives, a market dominated by Americans and hence American levels of remuneration. This trend has locked us into American executive pay scales which is bad enough but at the same time these imported executives want to lock our workforce into imported industrial relations systems - consider the issues at stake in the Victorian power dispute which is between Australian workers and British executives. According to Business Week, the average CEO of a major American corporation made 42 times the pay of a typical American factory worker in 1980. By 1990, that ratio had more than doubled to 85 times the average factory wage and almost quintupled again to a staggering 419 times more in 1998. If that rate of exponential growth were to continue, the average CEO would make the salary equivalent of more than 150,000 workers in 2050. Defenders of runaway CEO pay argue that market forces are at work determining executive compensation levels and that CEOs are justly rewarded for increasing their company's share prices. But are CEOs entitled to such lucrative pay deals based on their performance? In 1998, the American business press headlines exploded with stories of pay for mediocrity, to the extent that it appears that very few executives are paid on the basis of performance or even their company's profit. Instead they are drawing their huge increases from the ever increasing value of the stock market generally. Certainly, if the BHP and AMP payouts are anything to judge by, the same can be said for Australian business. When it comes to executive pay, share option grants appear to have the Midas touch. As the stock market has broken record after record, they have become an increasingly popular form of executive compensation in Australia as much as in the States where share options make up two-thirds of a CEO's pay, up from one-third in the 1960s. Instead of having to beat their competitors, CEOs with share option-fuelled compensation packages are graded on a curve: the rising stock market. As stock prices increase generally, even mediocre CEOs can realise large gains from their options. Human resources consultant William M. Mercer Inc. estimates that only a quarter of option grants awarded to CEOs contain any sort of link to performance, such as premium-priced or indexed stock options. But lavish executive equity incentive plans can hurt shareholders. On May 21, 1998, Computer Associates gave its CEO, Charles B. Wang, shares totalling $670 million. This enormous stock grant exercise turned Computer Associates' first-quarter earnings of $194.2 million into a $480.8 million loss. When the news reached Wall Street, the company's stock fell 30.7 percent in a single day. Here in Australia we have been hearing a lot recently from Telstra's senior executives about the threat to profit levels and the Corporation's share of the market from other carriers. The American experience suggests that the Telstra Board, rather than pointing the bone at workers, should be taking a very hard look at executive packages and equating it directly with performance indicators. ENDS Bosses' push to deny sick leave by Ian McCarthy Telstra workers can expect more not less hassles in the year 2000 in regard to sick leave. In fact telecommunications workers in general can look forward to continual attacks on their sick leave benefits as employers push the boundaries of employee entitlements knowing that such policies have the support of the Howard Government. Already we have witnessed the concerned supervisor who turns up at the sick worker's home just to see if he or she is OK - in truth to check out the veracity of the worker calling in sick. Transparent this most certainly is but also from the supervisor's point of view a very irksome experience as the partners of the sick are usually a lot more forthright in their attitude to such unwelcome intrusions than the bedridden patient. Now we can look forward to somewhat more subtle games. One that management really seem to be going for is 'employee sickness denial'. This occurs when the supervisor seeks the co-operation of the sick worker in not reporting as sick, but rather taking some time off and coming back later or putting in the extra time tomorrow to make up those lost hours. Anything other than taking recorded leave. Many supervisors these days achieve their bonuses through performance indicators some of which they have traditionally had no control over. One is unscheduled absences. Sick leave and accidents at work are such absences and supervisors receive money in their pockets if they can keep such absences to a minimum. This leads them to try every trick in the book to achieve a nil report on such absences. Workplace accidents and illnesses are a rising issue of concern because of this bonus strategy. Whereas once upon a time managers had an interest in getting unproductive workers fixed up and back at work once they were 100% fit, they now have a pecuniary interest in denying that any form of accident ever occurred in the first place. Medical experts in the area of occupational health and safety are reporting that today it is becoming increasingly difficult to collect any statistics on non-serious accidents and ill health caused in the workplace because such injuries are covered up using all sorts of euphemisms and smart-arse strategies. So next time you are approached by a supervisor keep in mind that sick leave is a traditional right and for most of our members an award entitlement. Any attempt to get around sick leave will leave you open to further illness just for the sake of putting a few dollars into the wallet of a very short sighted manager. ENDS UK operators win agreement after strike by Dale Keeling British Telecom operators have achieved a major breakthrough in their working conditions following their successful national strike action last November (see On the Line December 1999) Following the strike of 4,000 call centre operators BT agreed to meet the Communications Workers Union (CWU) and an agreement has now been made by which both sides will work together to make BT a model of best practice for the call centre industry. CWU Deputy General Secretary Jeannie Drake said that the one-day strike had been "100% successful in bringing conditions in UK call centres to the top of the industrial agenda". Since the strike major enquiries into call centres have been instigated by both the Health and Safety Executive and the Department of Trade and Industry. The agreement commits both BT and the CWU to making BT's call centres the hall-mark by which other companies will be judged. The agreement also includes: ¥ call centres answering '150' calls increasing full time staff by 800, with a reduction of agency staffing to 13% of the workforce ¥ call centres answering '151' calls recruiting full time BT staff so that they form 80% - instead of 40% - of staffing ¥ call handling times becoming a 'team' rather than individual measure ¥ an agreed stress management programme ¥ and other improvements concerning annual leave arrangements, attendance flexibility and criteria for the use of agency working. ENDS C&W OPTUS CEPU seeking OH&S revitalisation by Mark Brownlow Assistant Secretary CEPU officials from Victoria and NSW have recently met with senior C&W Optus management to discuss the processes used by the company in the application of their occupational health and safety (OH&S) policies. We have two primary concerns, among others - the lack of formal OH&S representatives in any C&W Optus workplace and the shallowness of accredited training provided to employees selected to take part in established consultative forums. C&W Optus does have a consultative arrangement in place whereby employee reps on these forums receive an introduction to OH&S through a brief, four hour course. These same reps serve on the consultative committee for a limited period of time, normally 4 to 6 months before being replaced by another employee rep. One of the advantages of having rotating reps is that a greater number of workers are exposed to OH&S matters. However, there is differing legislation governing formal OH&S representatives in each state. In Victoria for example, when there is a request by an employee for a formal OH&S committee then the employer must establish that committee including an elected OH&S Delegate. This delegate must receive five days formal training and also can not be replaced after 4-6 months. Other states have slightly different requirements for establishing formal OH&S committees. It is our view that a combination of the existing C&W Optus arrangements and the more formal structures required by legislation would provide the best possible OH&S outcomes for C&W Optus members. In these particular circumstances we are dealing with installation and maintenance technicians involved in the broadband network. However, the principles involved apply themselves equally to all parts of the business because while the hazards may be different they are no less important. Discussions will continue and we would welcome any suggestions from members or examples of OH&S problems that we can help resolve. ENDS Call centres the new sweatshops by Dale Keeling The number of call centres in Europe is set to double from the current total of 9,700, and it is estimated that by 2002 there will be nearly nine million people worldwide working in call centres where workers use a mixture of telephone and computer communications to generate $7 billion in revenue. Yet according to the Communications International (CI) the world-wide communications union organisation, call centre staff face growing problems of sweatshop work and invaded privacy. Most staff (the majority of whom are normally women) experience high pressure, monitored work around the clock, seven days a week with stress and strain injuries. Constant electronic monitoring means no privacy in their working lives." The alert came as unions in 50 countries marked International Call Centre Action Day during which unions distributed leaflets, arranged publicity about call centre conditions and staged rallies. In the UK the CWU targeted call centres owned by Cable and Wireless, Excell Multimedia, Orange, Vodafone and Telewest. Similar action was taken in Panama, Albania, Ireland, Mauritius, Germany and Scandinavian countries. In Australia a rally was held in Melbourne. In Germany banking, media, postal and telecommunications unions joined forces to run a four-day internet chat line offering expert advice to call centre staff on the future of work, privacy and tele-working. ENDS Power workers reject contracts sham The La Trobe Valley in Eastern Victoria has been hard hit by the process of privatisation over the last few years. Unemployment in towns like Moe are extremely high and there has developed in some quarters a culture of hopelessness and despair. Much of the state's power generation has been sold off to overseas companies by the Kennett Government. In addition Kennett scrapped the state's own industrial relations system leaving the Government, as has been exposed by the recent dispute, with very little ability to influence events other than by invoking emergency laws. One of the generating companies, Yallourn Energy which is British owned and managed, wants to end the enterprise agreement, arbitrarily alter workers' hours and use non-union contractors. British executives refused to bargain with the unions including the CEPU's Victorian Electrical Division Branch. All Yallourn Energy has offered is a seven-year phasing out of shift rates, no forced redundancies for the life of the new agreement and some pay rises. The dispute, which started in January, escalated recently when Yallourn Energy locked out about 500 employees following a strike by 80 maintenance workers who refused to accept contracts. The Victorian Trades Hall Council accused the company of purposely causing the dispute to occur during the hottest summer months when, based on past years black-out experiences, air conditioners lead to power outages. Their evidence for the charge is the company's recent extensive purchases of power credits from the national grid. Much of the local anger being directed at the company comes from the workers' own experiences in the Valley particularly unemployment. One locked-out worker in a newspaper interview summed up the workforce's concern. "When the SEC was privatised we saw from experience what can happen: people took packages and worked as casuals on short-term contracts and most of them are now unemployed." ENDS It's not a time to be casual Did you know that 32% of women in the paid work force are employed on a casual basis? If a recently released report by the Evatt Foundation on casual work, called Choice and Coercion: Women's Experiences of Casual Work, is anything to go by, you might find that many of these workers have been incorrectly classified or are being ripped off. With only 11.6% of casual employees belonging to a union there is clearly a big challenge for the union movement. Funded by the NSW Department for Women under the Women's Grants Program, the Evatt Foundation report found that: Casual workers generally earn less than their permanent counterparts, have poorer access to training, fewer entitlements, have less bargaining power and longer periods of unemployment between jobs. Casual loadings in some industries have not kept up with the benefits accrued to permanent employees, including personal/carers leave and family leave, all benefits which are particularly important for women. At the launch of the report in November, the NSW Minister for Women, Faye Lo Po commented that many employers have not caught up with flexible work practices and are not prepared to be flexible about start and finish times. As a result they often see casual employment as the only alternative to nine-to-five full-time employment. The lesson from Choice and Coercion is that the risks associated with casual work can mean substantial hardship for an increasing number of workers. The research found that if women had a real choice, their choice of work would most often be permanent - either full-time or part-time. Unfortunately, for many women the choice is casual work or no work at all. Being in a union can make a huge difference to women who work on a casual basis. On this International Women's Day talk to the women employees in your workplace who are casuals. If they're not in the union get them to join. International Women's Day is on 8 March. For information about International Women's Day activities contact the Women's Information & Referral Service of the NSW Department for Women on 1800 817 227. ENDS CEPU moves towards consolidation by Ian McCarthy The CEPU National Council adopted a decision late last year that establishes a process to rationalise the structure of the Union into a single entity that reflects the occupational and industry groups that make up the CEPU. Shortly before (in October 1999) the Communications Divisional Council took a decision to explore the integration of the division and specifically to look at the most appropriate structure for the P&T and T&S Branches. These two parallel processes are now underway and shortly a consultative process will begin and branch committees of management will be briefed on the consolidation arrangements. In March it is expected that National Executive will establish a national working group to gather branch input and begin to draft rules and organisational structures for the new look CEPU. The rapidly changing telecommunications and postal industries bring about these moves. Deregulation, outsourcing and re-organisation of traditional workstreams and job designations have now forced the Union to examine their structures. It is the intention of the Branch to ensure that membership forums are established to fully brief members on the proposed changes and seek their views before proceeding with any changes to the organisation. ENDS Decision of CEPU National Council The CEPU National Council believes that the current Divisional structure of our Union is not now appropriate for the 21st Century and the challenges we face. There is now a need for a structure which maximises membership services and provides for a more effective capacity to unionise and organise current and new areas. Council therefore determines that the Union must restructure its Rules and organisation to allow for the integration into one structural Union entity. To facilitate this decision National Council endorses, in principle, the following consolidation model: One National Organisation consisting of a National Council and Executive, which shall be representative of the State Branches. One consolidated National Office Structure consisting of full time Officers and Administration Staff that will service this body. This National Council will be the governing body of the Union. A State Committee of Management or Council in each State which will be the consolidated governing body within the State. This council will be representative of all occupational membership sections within the State. The process will include office and administration consolidation. Membership sections in each State which shall reflect the occupational groups or industry groups within the Union in each State. The role of these sectional groups will be to ensure that all CEPU occupational or industry groups membership interests are met in an equitable manner. Each section shall manage the industrial interests of members within that section subject to the overall control of the Branch Committee of Management. The final make up of the consolidated National and State Structure shall be detailed in the Rules of the Union and shall be negotiated at National and State level. It is expected that this process will be finalised by the 2001 National Council Conference after consultation with members. The final structure and underpinning rules will be subject to the ratification of National Council in accordance with the Rules. National Council further determines that to facilitate the consolidation of the Union, the National Executive shall establish a working group representative of each Division or Divisional Group that shall service all consolidation negotiations. The working group shall have the responsibility for drafting Rules subject to the directions of the National and State negotiating groups, minuting and arranging meetings, communicating the progress of the negotiations to all relevant committees of management. The working group shall report to the National Executive and Council on the progress against the time line set by National Council. National Council also requires that the decision to consolidate the CEPU be conveyed to all current Committees of Management within the Union. To this end, Council directs that National Executive Officers arrange joint Committee of Management Meetings in each State as soon as practicable. ENDS TELSTRA SALE Nationals step up pressure on Howard by Ian McCarthy John Howard is coming under intense pressure from within his own Coalition parties not to proceed hastily with his planned sale of the remaining 51% of Telstra. Opposition to Telstra's sale is coming mainly from a broad range of regional and city Liberal and National backbenchers, the NSW National Party leadership and the highly influential National Farmers Federation, normally a bastion of Government support. The biggest headache for Howard most probably comes from the National Party's NSW leader, George Souris, who recently said that he opposed a full sale until communications problems in the bush are dealt with. Mr Souris has argued that the National Party would not support any further sell-off in the "immediate period until telecommunications reach the sort of level that we want to see them reach in country areas. "We have a long way to go with the provision of telecommunications services. Therefore, I would not be in favour ... of any further reduction in Australian ownership of Telstra". Mr Howard has told the National Party that Telstra's community service obligations could be protected under full privatisation although such vague promises have not gone down well in the past given the actual track record of Telstra senior executives who do not believe that they have any social role to play other than to maximise profits for shareholders. Mr Souris is also alarmed at John Howard's suggestion that further rural infrastructure projects would be linked to the funds available from a full sale of the national carrier. Speaking in Dubbo recently, Mr Howard made the veiled threat that "What I'm confronting the Australian community with is the choice .... do you want to have tens of billions of dollars invested in a telecommunications company or do you want more upgrading of infrastructure, including in the regions, at an earlier date [and] to a greater extent? What I've initiated is a debate in the country about what our priorities are." Mr Souris in response argued that only Telstra could provide important telecommunications infrastructure. Arguing that rural areas still did not have a decent mobile phone or data-carrying network Mr Souris said that full privatisation of " ... one of the most important utilities that country NSW and Australia has" would reduce regional access to telecommunications. Arguing that rural people would not be able to influence a fully private telecommunications company the way it can a majority government-owned company, the National Farmers' Federation is encouraging its powerful affiliates to take up a position on the proposed sale of the remaining 51% of Telstra. The NFF, which is appearing quite sceptical about the proposed sale timetable, believes that country people want to see if there are genuine improvements in rural infrastructure arising from the sale of the last 16% tranche before committing to a further sale. ENDS CEPU Retired Members' Association The Association meets at the Transport Social Club, Regent St, Sydney at 10 am, 4th Thursday in the month except in January, May and December. Membership currently is $2 a year or $20 for Life Membership We lobby politicians and hold many social events and trips Contact Secretary Ralph Britten, PO Box 956 Guildford NSW 2161 (02) 9632 9506. President Harry Collins (02) 9773 6851. Jim Spencer (02) 9529 7249. Stan Large (02) 9529 3570. ENDS CONTRACTS Legal win for Pilbara workers The Howard Government's industrial relations strategy has suffered a serious blow arising from the legal victory by Pilbara miners and their unions. Following months of industrial action in many BHP divisions around the country the unions representing workers in BHP's iron ore operations in the Pilbara won an injunction to halt the spread of individual contracts. BHP employs about 1000 workers in its operations with the company claiming that 45% have accepted contracts. This has also led to some of them leaving their unions as happened at Weipa on the Gulf in 1998. In the Federal Court Justice Peter Gray found that BHP may have discriminated against award-based employees, broken awards and unfairly induced many workers to leave their union. All the findings would constitute a contravention of the Howard Government's own Workplace Relations Act. Following the offer of contracts to some employees on November 11 last year (delivered to their homes without consultation), involving some improved conditions, BHP refused to enter into a new collective agreement and would not negotiate with unions seeking similar improved benefits for award-based workers. Extensive industrial action and picketing, sanctioned by the ACTU, followed with BHP employees in other divisions throughout the country taking similar action in the knowledge that they would be facing the same problems if the company won the Pilbara Dispute. Handing down his decision January 31 Justice Gray found that "There is some evidence of overt discrimination ... against those who continue to be its award employees." He said that he had found evidence that BHP may have induced employees to leave their unions, which would be a breach of the Workplace Relations Act's freedom of association clauses. He also found that the Big Australian may have breached contracts entered into with award employees. In the wake of Justice Gray's decision BHP informed the ACTU that it was prepared to negotiate a settlement insisting though that a settlement for award workers would have to include the provisions in the contracts dealing with productivity gains and changes in work practices. Such pronouncement are yet to be tested around the negotiating table. The actions by BHP come in the wake of markedly improved employee productivity in recent years, not as a result of any fall-off. The company via its workforce, has been able to: ¥ reduce staff levels by 20% in 12 months ¥ cut the cost of ore by 17% - a saving of $140 million ¥ push iron ore movements up by 17% The company estimates that it will save $80 million if it can get its workers off awards and onto contracts. Although overall wages for contract workers will rise, costing the company an extra $10 million a year, the ACTU has argued that the $80 million will be gained from: ¥ lost jobs ¥ longer hours of work for no more pay ¥ contracting out ¥ employing new workers on lower rates ¥ loss of employee rights over work practices particularly hours, shifts etc ENDS New Year's rip-offs exposed by Ian McCarthy For quite a number of Telstra workers, New Years Eve did not turn out to be anything like the financial bonanza that had been promised. Like many employers, Telstra found it had to entice workers into coming to work on December 31, traditionally a time when many people take leave and outside of call centres, labour needs are pretty slack. Not so on this occasion due to the combined impact of millennium partying and the Y2K threat. We all heard about workers getting paid huge amounts for working on New Years' Eve. In Telstra for many workers there was the attraction of some very hefty overtime rates plus in some instances bonuses of $500, even $1,000. What we are now hearing is that some workers had their evenings completely stuffed up. Gradually the stories have been coming in to the Union - members who were told to come in for some extra overtime and then told to go home after just a couple of hours - they weren't needed and so no bonus. Members who had cancelled personal arrangements once they'd been asked to come in and then had the work cancelled at the last minute. Other workers who went to work, were then told that they weren't needed and ended up just hanging around with nothing to do and no bonus or overtime to collect. Other workers did work their shift but it has never been made clear to them how much their bonus will be. As we know that award workers were amongst these disenchanted members, we can only assume, given Telstra's track record, that there are contract workers out there who got treated a whole lot worse, possibly receiving nothing for working New Year's Eve. Members with a problem over NYE should contact the Union office ASAP. ENDS TBS back down over uniforms by Mark Brownlow Telstra Business Solutions (TBS) management were forced to back away from a newly announced uniform policy recently when field-based workers demanded that they keep their more practical work gear. With the New Year upon them TBS managers rather hastily tried to prevent installation and maintenance members from having access to polo shirts and shorts, instead demanding that they wear their clients' uniform of business shirts and ties. Our members were aghast. Such an unthought out policy raises quite a number of health and safety concerns, particularly when our members would be required to work under floors, in confined spaces and in harsh environmental conditions. Can you imagine wearing a tie in confined spaces? On top of that does management think that a dirty worker in business shirt, tie and slacks looks better than a dirty worker in traditional work clothes? After correspondence and discussions between the CEPU and TBS management the matter was finally resolved with the full range of work wear available for all field based staff. ENDS What's happening overseas? More than 80% of union members employed by US carrier AT&T have voted in a nation-wide ballot to authorise possible strike action. Such action may now be called by the leaders of their union, Communications Workers America (CWA). Members are fighting AT&T's refusal to abide by contract provisions negotiated and agreed to by the company last year. The breaches involve serious unfair labour practices. AT&T has backed down from its threat to abandon toll-free directory assistance, the CWA hailing the move as a big victory in the fight not only to protect operator jobs but to preserve an important customer service. AT&T had petitioned the Federal Communications Commission to allow it to discontinue the operator-provided 800 number directory assistance and shift that data to the Internet. This drew sharp criticism from the CWA and from consumer and public interest groups. Opponents cited hardships the move would cause to millions of people not connected to the Internet especially the poor and the elderly as well as to disabled people and others who rely on the operator-provided service. In the CWA submission to the FCC the Union noted that a test of 411 directory assistance and Internet-based directory services showed that these alternatives took longer than AT&T's service and produced faulty results more than half the time. British Telecom (BT) has responded to a profit slump by announcing 3,000 managerial job cuts. In the nine months up to December 31, 1999 pre-tax profits at BT fell to £2.313bn from £3.459bn in same period of the previous year. BT's total turnover in the same corresponding nine-month period rose from £13,326 to £15,901 this year, boosted by BT's acquisitions across the world. Vodafone is now one of the biggest companies in the world just behind Microsoft and General Electric following its clinching of one of the business world's biggest takeover deals with arch German rival, Mannesmann. The new company will have 42 million customers. The deal was finally struck after a long battle between Vodafone and Mannesmann, sparked by the German company's buy-out of Vodafone competitor, Orange, followed by Vodafone's hostile retaliatory bid for Mannesman. The IG Metall union reps on the Mannesmann Board have now accepted the proposed merger which will involve all of the merged company's fixed-line, mobile phone and Internet operations being taken over by Vodafone whilst the engineering, metal and automotive divisions will be independent subsidiary shareholding companies. Compiled from Internet sources by Dale Keeling ENDS