Telstra EA Update: PAY

For a number of weeks, Telstra and the unions’ Single Bargaining Unit have been negotiating over the size of the pay rises to be paid over the life of the next Enterprise Agreement. A number of proposals and counterproposals have been made by the negotiators in an attempt to find a figure that will be acceptable to both sides.

At the bargaining meeting of Thursday 16 August, Telstra tabled an offer which it has indicated it regards as representing a fair and final settlement of these negotiations around pay.

The offer, as set out below, would deliver pay rises of 3.5%, 3% and 3% over the three years of the agreement to all “Workstream” (i.e. Category 1, Part A) employees and the same increases to the pay “pool” for “Job Family” employees.

The actual pay rises for Individual “Job Family” employees would depend on their performance and could be either more or less than the “pool” average.

In addition:

• Category 1 EA employees would receive a 2.37% “catch-up” increase* at the commencement of the agreement. This would mean that the company rate for all Workstream employees would be the same.
• Workstream employees  would continue to be eligible for bonus payments based on the present performance rating system.
• All employees will also receive a 1% increase in their employer superannuation contributions spread over the life of the agreement.

Pay offer: Workstream employees 

*Represents the actual current difference between Category 1 and Part A pay rates for the same classification level.

In addition, increased employer superannuation contributions will be paid as follows:

The increase will be paid directly into the accumulation fund for those on this form of superannuation. Discussions are continuing about how those on defined benefit schemes will be paid.

Performance bonuses will be available as follows: 

Pay offer: Job Family Employees 

In addition, Telstra will increase employer superannuation payments as follows:

Proposed pay structure: Workstream employees

There will initially be no change to the way Workstream employees are paid (other than the equalisation of the Category 1/Part A company rates). Telstra proposes, however, that from 1 July 2013, all Workstream employees will move to the Fixed Remuneration system of pay.

This means that from this date you would receive your annual leave loading as part of your regular pay (but on top of the company rate). Your employer superannuation payments would also form part of your Fixed Remuneration.

Proposed pay structure: Job Family employees.

For Job Family employees there are no changes being proposed to the way you are being paid.

However Telstra has agreed for the first time that the great majority of these employees will get a pay increase i.e. over the life of the agreement there will not be any pay “freeze” for these employees as has occurred in the past.

The size of any increase will continue to depend on performance, however, and it will be possible that some individual employees get no increase at all.

Telstra has also agreed that some explicit commitment to transparency in the “Job Family” system will be included in the agreement, but wording is still to be finalised. 

CEPU position on Telstra offer

During these negotiations, the CEPU has argued consistently for pay rises that: 

·         provide protections against future rises in the cost of living

·         are in line with national wage trends and collective bargaining outcomes

·         reflect Telstra’s current strong position in the market and

·         recognise the contribution of its employees to the company’s success.

This year Telstra returned to positive earnings and profit growth for the first time since 2009. It has negotiated agreements with the government and NBN Co that guarantee it access to strong cash flows into the future.

For these and other reasons the CEPU believes that Telstra can well afford to improve on this offer.

In line with this belief, the CEPU has asked for a meeting with senior Telstra executives to pursue our claim for an increase to this proposal. Telstra has agreed to hold a meeting tomorrow, Thursday 23 August, between the unions and members of the company’s Remuneration Committee.

The CEPU is also continuing to ask for certain protections to be given in relation to the move towards a fixed remuneration structure for all employees. Specifically we want employees to be able to identify the different components of their pay so they can be confident that they are actually still receiving their full entitlements.

Members will be kept informed of the outcomes of these further discussions.