The release of the NBN contractor short-list for construction of the NBN has prompted the CEPU to question the company’s employment model.
NBN Co has now released the names of 21 companies which have been invited to tender for NBN work. It includes all the telecommunications contractor majors such as Visionstream, Service Stream, Transfield, Downer, Baulderstone and Silcar together with a number of companies from the electrical sector.
It is expected that between 3 and 10 companies will eventually be chosen for lead contractor roles. Other companies will in turn contract to them.
Telstra has also been selected as a potential contractor to NBN Co. However, while the CEPU has welcomed the prospect of Telstra and its Telstra members playing a significant role in the NBN build, the union has also voiced concerns about a model which will see the familiar contracting and sub-contracting pyramid used on the project, both during and after roll-out.
Divisional Secretary Ed Husic said that the union had “great misgivings” about the proposed arrangements.
“Under NBN Co’s approach, quality will be diluted as the work cascades to smaller and smaller firms, the margin for error increases – and employee conditions and security and safety all get squeezed.”
Husic also voiced concern about the implications of both the NBN tender and the NBN/Telstra agreement on the Telstra workforce. As he pointed out, the agreement does not in itself guarantee any work to Telstra on the project.
The CEPU considers that Telstra’s skilled workforce represents both a competitive advantage to the company and a key asset for the industry and the nation as a whole. It should be fully utilised.
An agreement on this score between Telstra, NBN Co and the Government and a halt to any further Telstra redundancies should now be a priority for all parties.
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