Members would already be aware of Telstra’s self labelled “final final offer”.
The CEPU has been holding discussions with members across the state to communicate the details of this offer and obtain members’ feedback.
The details of Telstra’s offer so far
· Pay increases of 2% plus a 2.5% sign on bonus in 2009, 2% in July 2010, 2% in October 2010, 2% in July 2011 and 2% in October 2011.
NB: The 2009 payments have been made with the 2.5% sign on bonus as a one off payment that does not count as salary.
· Salary packaging arrangements (leased vehicles, home accommodation costs, etc would be included on top of the current limitation to superannuation payment).
· Redundancy payments retained at 84 weeks with greater emphasis on swaps/volunteers and some improvement on the SWAG process including 2 weeks extra pay out.
· Performance pay/management arrangements are improved to the extent of access to arbitration and quarterly formal consultation with the union.
· All current conditions of employment such as long service leave, annual leave, etc. will be retained.
· A compromise on Telstra’s Part A/Part B model in that new starters would come in on the negotiated and agreed EBA and classification system in the CEPU majority areas of CFW and TW. All current employees remain on the EBA pay and classification system.
· A 10% increase in essential customer servicing allowance payments.
· A consolidation of ECAs expired, AWAs and EAs in the next EA.
· Following exhaustion of the internal dispute process either party can refer the matter to FWA for arbitration on all issues contained in the EA.
CEPU response
The CEPU has proposed alternative pay arrangements to Telstra which would bridge the 2.5% gap between EA and ECA employees and is awaiting Telstra’s response.
The CEPU and its legal representatives are currently examining Telstra’s tactics and how they stand up in the eyes of the law to examine the potential of legal challenges to the pay inequity the offer provides for.
Some identified legal challenges are now already underway and others are still being examined and prepared.
In a recent Fair Work Australia decision, the Commonwealth Bank has been found to have undermined collective bargaining with its staff and not bargained in ‘good faith’. Fair Work Australia found against the employer after the bank increased wages while locked in long running talks with the Finance Sector Union.
This is in contrast with in late 2009, whilst discussions were taking place with the CEPU, Telstra unilaterally decided to pay 2% salary and the 2.5% sign on bonus. Telstra has consistently claimed this is their ‘final offer’ again and again which is hardly ‘Good Faith Bargaining’.
The CEPU and its legal representatives are looking closely at the Commonwealth Bank case and are currently examining legal options in relation to Telstra’s similar behaviour.
Telstra has also been starting new field technicians on an ECA in areas where they will be working alongside EA workers. The particular ECA is called the National Service Delivery One and is not appropriate for field based workers. Rather, it applies to employees who provide support functions and people management within the Service Delivery regions. Hardly constitutes to the function of a new employee.
The entire tactic of starting these new employees on this agreement goes a long way in saying something about Telstra’s commitment to ‘Good Faith Bargaining’ with the CEPU and the Single Bargaining Unit when it comes to providing a fair and equitable new EA for Telstra workers.
Where to from here?
Amongst further negotiations with Telstra and possible legal challenges, the CEPU is also considering a postal ballot of Union members across the country in order to seek members’ views on Telstra’s ‘final final offer’.
Members will be kept informed of further progress.
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