Leaked slides analysis: July 30 presentation. Download our summary

August 13, 2008

The leaked Powerpoint presentation contains some of the same slides as the earlier presentation. It appears to update the strategy previews we determined as early as February 2008. This document goes through each slide.

DOWNLOAD OUR ANALYSIS

Summary

*    The EA negotiations Telstra HR cancelled last month were an HR charade.
*    As early as Feb 08, HR was planning non-union, non-negotiated agreements.
*    Non-union, non-negotiated agreements to be rolled out Telstra-wide over the next year.

What does their leaked strategy mean for Telstra workers?

*    Real pay cuts planned as HR dip into your pockets to fund transformation.
*    Payrises they have planned for your base rates over the next three years do not meet inflation.
*    Telstra is not respecting your right to be represented by your union. They are not bargaining over your wages and conditions.  This agreement is take it or leave it.

Definitions

The Enterprise Agreement is a union negotiated collective agreement. With a union collective agreement, HR is obligated negotiate with unions who represent staff. HR cancelled these talks. The enterprise agreement wages and conditions remain in place, including the current redundancy agreement even after the expiry date, 5 September, unless replaced by a new agreement,

The proposed “Employee agreements,” are non-negotiated,  non-union “collective” agreements. HR negotiates with no-one: not you, not your unions. The slides show HR will roll these out to many business units within Telstra.  Note only those on expired AWAs and those currently on the enterprise agreement (EA) or award are eligible to vote.

Slide 3: Our workforce: Collective arrangements
*    This slide shows “Telstra has moved from ‘collective’ to ‘individual’ arrangements over the last 5 years.
*    Unions have long argued that this is Telstra HR’s strategy. It was made very clear last year when they mounted a blitz to sign up as many employees on WorkChoices AWAs as possible before the Labor Government’s workplace laws went through Parliament.
*    For Telstra HR, a workforce based on individual agreements rather than collective is desirable because it means employees have less collective voice, no bargaining power, and limited access to their unions.
*    The slide dramatically underestimates the level of union membership. Telstra no longer knows the level of membership as members pay the union directly, not via payroll deductions.

Slide 4: Part A/Part B future EA Structure preserves existing model and protects employee benefits
*    This slide is a repeat from the earlier presentation.
*    This slide shows that Telstra is returning to the Part A/Part B model they put to a vote last year in call centres and lost.
*    It divides employees into two tiers. It seems he ultimate goal is to get all employees onto Part B.
*    As AWAs inevitably expire, employees previously covered would go on to part B.
*    Telstra HR have learnt from their defeat last year and are including the illusion of choice
*    Part A can move to Part B anytime, and having done so, can return to Part A once only. Employees who start off in Part B (new employees and those coming off AWAs) have no option to move to Part A.
*    Their headline previews the spin they’ll use to announce this model.

Slide 5: Costings: Bain estimates of new recruit savings in Telstra Operations of Part A/B model
*    This slide is a repeat from the earlier presentation with a different title.
*    Despite HR suggesting in most correspondence that they are looking after employees, this slide confirms their strategy will in cuts $15 -37 million from remuneration costs.
*    Bain is an American consulting firm brought in by Sol Trujillo when he took over as CEO.
*    When it says over the graph, “Assumes incentive pay equals productivity gains,” it also shows that they will be expecting you to work harder in order for the company to make those savings.

Slide 7: Proposed timetable (indicative)
*    This slide shows the timetable for the non-union, non-negotiated agreements to be rolled out to Wholesale and Service Advantage (TBC).
*    Note that for the rest of the company, the August - late September period is marked “Consult, engage, inform, assure.”
*    After this period, EA plan (non-negotiated Employee Agreements) will be rolled out to the rest of the business units.

Slide 8: Wholesale timetable - proposed
*    Details about the roll out to Wholesale of the non-negotiated Employee agreement.
*    Note that “employee consultation” takes place between 7-15 August.
*    However, the content of the agreement has already been finalised - the consultation is a sham.

Slide 10: Features of proposed agreement
*    This slide shows Telstra wants a two-tier workforce.
*    People currently on Enterprise Agreements will be Part A. Expired AWA employees will have a choice of Part A or B.  Staff on non-expired AWAs and new staff will go onto Part B.
*    This slide shows Telstra HR will try and make the agreements acceptable to staff by saying they have incorporated many of the union demands.
*    HOWEVER: this slide has not guaranteed or provided details on many important conditions.
*    For example, while redundancy pay will be retained, procedures won’t be, meaning you may have no say in being made redundant, no recourse if you think it’s unfair, and no one to represent you.
*    The slide also reveals they will introduce performance pay to all workers.
*    They have acceded to union and staff demands for salary packaging to be introduced for current EA (Part A) workers.
*    To make the Part B package attractive to Part A employees, they have included the right to cash out and buy additional annual leave. Why can’t they offer it to both tiers?
*    Because they see the minimum number of employees in Telstra are in the union, Telstra believes making this offer is the only way they might get the vote up: as they say, these conditions are “essential to vote”.
*    It is not clear what would happen in future agreements.

Slide 11: Salary packaging enhances EA [non-negotiated employee agreement] offer
*    This slide reminds you that Telstra deliberately chose to exclude Enterprise Agreement employees from the benefits of salary packaging.
*    HR did this to try and lure people onto AWAs.
*    They excluded Enterprise Agreement employees from this right even though it would actually save Telstra money.
*    It would be interesting to Telstra management to explain why they did this to shareholders. It would also be interesting for Telstra to explain how this was not discrimination or coercion.

Slide 12: Payroll tax deductions is salary packaging was extended to EA [enterprise agreement] employees
*    This shows that Telstra will save up to $411,000 per year if 80% of EA employees take up salary packaging.
*    It really is punitive and mean-spirited for Telstra to deny their staff salary packaging for eight years, especially when running a car and buying petrol is so expensive. If Telstra could save money by helping staff out, they should have.

Slide 14: Options for discussion
*    This slide offers three options for discussion about your payrise.
*    Options 1 and 2 provide guaranteed pay rises of 11% over three years (3.67% per year),
*    Option 3 provides for a guaranteed pay rise of 11.5% over three years
*    Option three is the best, but even that option means a real paycut over three years when you compare it with the CPI.
*    In this slide, even Telstra acknowledges that CPI (inflation, ie the cost of living) is rising at a rate of 4.5% a year
*    Some staff who meet performance benchmarks will receive more under each of the three options, but this is not guaranteed
*    This slide highlights that Telstra is debating your payrise behind closed doors. It is bargaining with itself, rather than recognise Telstra employees’ right to representation and the right to bargain collectively
*    All proposals are less than what unions have argued should be the minimum guaranteed pay rise.
*    There is no information about the objectivity or fairness of the merit-based pay system, however Telstra admits the merit-based increases will not cost much.

Slide 15: Telstra Operations: Company Rate (EA) costs
*     Telstra costs the pay rises for each year

Slide 16: Telstra Ops: Merit based bonuses
*    This slide is shocking in what it reveals about merit-based increases (performance pay).
*    It shows that they have already budgeted a limited, set amount, so if everyone exceeds expectations there will barely be enough to go around.
*    This slide suggests the merit-based pay rise pool is as low as $2.07million over three years.
*    If you divide this by the number of employees in Telstra operations covered by the EA (as shown in previous slides, 8- 8,100 employees) this would suggest an average of merit-based increase of $85 per year.
*    Even on Option 2 the average increase per employee appears to be only $327 per year (before tax).
*    The fact that the merit increases under option 1 (without ME, “meets expectations” incentives) is only $2.07 million, whereas option 2 (with ME incentives) is worth $7.9  million demonstrates that very few employees ever get exceeds expectations (EE) or strongly exceeds (SE) expectations incentives.

Slides 17 and 24: Wholesale: Company rate (EA) costs
*    Wholesale is the area where Telstra proposes rolling out the first non-union, non -negotiated agreement
*    Slide 24 suggests there are 689 employees, with 298 eligible to vote (i.e. either on expired AWA’s and on the EA/award.
*    Telstra costs the pay rise on the various options.

Slide 18: Wholesale: Merit based bonuses
*    Again this slide is shocking as it reveals the performance pay is already budgeted, and there is very little to go around.
*    Option 1 says there is $13,605 able to be distributed among the 298 eligible employees
*    This appears to represent an average increase of just $15.22 per year.
*    Option 2 provides $203,581 to be distributed over three years, representing what appears to be an average increase of $228 per year.

Slide 19: Timing of company rate increase
*    This slide shows a completely dodgy sleight of hand by HR.
*    Basically, by manipulating the time they give you a pay increase, they will be able to say it’s bigger than it actually is.
*    They say, “The changed timing of the increase reduces the 4.5% increase to ~4%.”

The following three slides are repeated from the first leaked Powerpoint.

Slide 21: Service advantage (call centric)
*    This slide profiles in detail the employment arrangements of Service Advantage (call centric) staff.
*    Note only the numbers in red, expire AWAs and award votes on the “employee agreement”
*    The “issues for consideration” points out that managers think a non-union, non-negotiated agreement will find success with these staff.
*    Telstra routinely profiles staff and units to ensure their employment strategies’ success.

Slide 22: Field Workforce
*    This slide profiles the Field Workforce unit and notes that most employees are on the enterprise agreement.

*    It highlights that Telstra HR knows unionised staff will be highly suspicious of any agreement that does not allow them access to their union.
*    It says, “potential for success in the short-medium term is low.”
*    That is why they are last in line to get a non-union, non-negotiated agreement rolled out to them.

Slide 23: Professional Technical Services
*    This slide profiles the 7600+ Professional Tech Services portion of the workforce.
*    It identifies that these staff do not have a “clearly defined business group identity,” especially “cf (compared with) field.”
*    These last three slides show that Telstra has a “thin end of the wedge strategy,” identifying the portion of the workforce where they think a non-union, negotiated agreement will be most successful.

Written by TelstraUnions · Filed Under Telstra HR's dodgy dealings 

Comments

2 Responses to “Leaked slides analysis: July 30 presentation. Download our summary”

  1. john davis on August 14th, 2008 8:04 am

    there must be a legal way of making telsta come to the bargining table or this labor goverment is only the libs version 2.0.
    when are we going to have union reps on site without having to ask telstra’s permission. get these’s drackonion rule changed and fast.

  2. Iris Carroll on August 14th, 2008 8:24 am

    The reason majority voters had voted for Labour Govement, (including myself) is to change the work conditions in this country. What is this government doing to protect us from these bullying conditions? Are we the next to be 3rd world status holding the bowl of rice?
    To keep Sol(TLS CEO) to the lifestyle he is accustomed, at our expense
    is the height of audacity!!!
    Collectively we need to show a united front& fight for our future before it is too late. It is like going back to Medieval times…’Lest We forget’…only a few decades ago lives were given to have a collective front for better CONDITIONS,

    Iris

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