Telstra cancels union talks

Telstra cancels union talks

Summary: Telstra has walked away from enterprise agreement negotiations with staff, claiming union demands threaten the telco's national broadband network proposal.

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Telstra has walked away from enterprise agreement negotiations with staff, claiming union demands threaten the telco's national broadband network proposal.

The company has been negotiating a new enterprise agreement for its employees since 15 May. According to the Australian Council of Trade Unions (ACTU), there are 11,000 Telstra workers whose collective agreement is due to expire later this year and more than 21,000 workers at Telstra who are on Australian Workplace Agreements (AWAs) that will expire in the near future.

In an internal communication to employees, Telstra executives said they had put a proposal on the negotiating table which tackled work issues such as redundancy pay, hours, leave, penalties and allowances. The letter was under the names of the telco's managing director of human resources, Andrea Grant; group MD, networks and services, Michael Rocca; and group MD consumer marketing and channels, David Moffat.

The trio said the company walked away from negotiations because the ACTU and the unions themselves were pushing for "side agreements" — a memorandum of understanding and a constructive relationship agreement — which the company considered to be unlawful and to lie outside the scope of the enterprise agreements.

"Signing these side agreements with their prohibited content could disqualify Telstra from tendering for the National Broadband Network (NBN) project and for other communications cabling work," the communication said.

Not signing the agreements, however, appears to be potentially damaging to the telco, with the unions' support of Telstra's bid hinging on its acceptance of the side agreements, according to the communication.

The letter stated the unions had made it clear to management that they did not lodge a regulatory submission in support of Telsra's NBN bid because of the company's unwillingness to sign the side agreements.

According to a spokesperson for the Council, the ACTU has received legal advice that the content of the side agreements, which canvasses issues such as workers being able to cancel AWAs for collective bargaining and have access to unions, are lawful, although they have submitted them to the Department of Workplace Relations to make sure.

"We don't just go around handing out agreements without consulting with our lawyers," the spokesperson said.

When the response comes back from the Department of Workplace Relations, the unions will drop any provisions which are a legal problem, the spokesperson continued. "It's in the best interest of the employees and the union that Telstra is a prospering company."

Topics: NBN, Broadband, Telcos, Telstra, IT Employment

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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Talkback

2 comments
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  • Consult with Members.

    I do not think that it is acceptable that Unions, who after all are duty bound first and foremost to promote the interests of their Members, should refuse to do so unless they are granted a side agreement that may not be in the best interests of their Members.

    As a person who supports the Unions and has been a Union Management Committee Member I have always found that continual information transference to the Rank and File for their advice and support is the best policy.
    anonymous
  • Laughable

    "21,000 workers at Telstra who are on Australian Workplace Agreements (AWAs) that will expire in the near future"

    Sorry ACTU, but you can't just make up figures. If the staff member renewed their AWA in December (like many did), the near future is in 4.5 years.

    Either way, this screws those on EBA. they were only getting a couple of % pay rise a year anyway and with inflation @ 4% it's going to suck even more.
    anonymous