Telecommunications
Members react forcefully to offer
(17 September, 2009): Telstra's pay offer was handed to union negotiators at the EBA talks on Wednesday 16 September.
While the union negotiators sat in the room reviewing the offer, management issued their offer to employees before the negotiators even left the room.
Telstra approached the media suggesting they had made a great offer to employees, but we've pointed out the shortcomings of their approach:
For those who haven't seen the offer we repeat it with brief comments from us:
- Company rate pay increases of 2%, 3% and 4% for EA employees over the three year term of the agreement. Comment: NO BACK PAY
- A sign-on bonus of up to 2% in recognition of EA employees not receiving an increase in 2008. Comment: THIS DOES NOT INCREASE SALARY
- A performance bonus for top performers. Comment: ONLY FOR A SMALL MINORITY
- The introduction of full salary packaging benefits, including $1000 towards Telstra products annually, purchasing additional leave and leasing of motor vehicles.
- The first increase would take effect from 1 October 2009.
Under good faith bargaining rules, we believe we need to formally communicate our position back to Telstra - but members are speaking loud and clear: they don't like the offer.
According to reports from members some managers are trying to "sell" the offer by making the following statements:
"this is an offer of more than 11% over 3 years"
"after the October remuneration review period the offer may be reduced"
"the pay increase in the first year is 4%"
"this is the best offer you will get"
These statements are either untrue and/or represent attempted duress and coercion: and we sincerely hope they have not been made at the direction of Telstra.
The CEPU believes that this behaviour is entirely inconsistent with good faith bargaining - with a "take it or leave it" offer put on the table.
The offer needs to be measured or judged against the following.
- Australia's economy is considered to be weathering the international economic storm really well
- As members have pointed out (click here to download a terrific example) in the thick of the economic crisis through 2008 and up until March 2009, Telstra was offering HIGHER pay rates as a carrot for employees to support non-union agreement.
- EBA employees have "tightened their belts "from 2005 till now, by accepting 7.5% over the 4 year period when the cost of living was higher thus suffering a real wage cut.
- If you think this is a poor pay offer - tell management (here's an example)! They think they're doing you a favour and telling the public the same. You need to speak up now!
Some more important points:
- Telstra's profit over that period totalled over $15 billion.
- Telstra has maintained its free cash flow target of $6 billion to give itself “investment flexibility”.
- Telstra has maintained its' dividend levels to shareholders
- Telstra refused to negotiate for nearly 12 months while management tried to roll out non-negotiated ECAs.
If you can’t get a decent wage increase when company profits, are booming, when economic conditions are sound, and after you have “tightened your belt” for several years, when can you get a decent increase?
Our final point is this - Telstra is in the fight of its life, trying to fend off proposals to split it in two. It needs all the supporters it can get - and this is the pay offer it extends to its employees. That's an amazing strategy for you. That's Telstra.
Got a view? Let us know what you think via feedback@cepu.asn.au