Leaked slides 2: Telstra wants you to work harder, and take a real pay cut
August 14, 2008
This week, the media revealed two extremely detailed leaked Powerpoint slideshows produced by Telstra Human Resources staff. They reveal:
* The EA negotiations Telstra HR cancelled last month were a 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 you?
* 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.
Telstra HR’s three leaked payrise options all constitute a pay cut in real terms
This slide offers three options for discussion - by Telstra HR, not by you! - 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 3 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 recognising 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. Most workers it appears will average just $77 in performance pay increases per year - just $1.50 a week after tax.
How does this compare with management increases
Sol Trujillo $13.4m 14% increase (increase of $30,576 per week)
Greg Winn $11.2m 96% increase
David Moffatt $4.4m 13%
Kate McKenzie $1.7m 13%
HR plans to delay your pay increase so they can pretend it’s higher than it actually is
* In this slide, they say, “The changed timing of the increase reduces the 4.5% increase to ~4%.” By manipulating the time they give you a pay increase, they will be able to say it’s bigger than it actually is.
* They are using this sleight of hand to claw back .5%.
Telstra workers will be worse off: proposed deal will cut $37 million from remuneration costs.
* Bain is an American consulting firm brought in by Sol Trujillo when he took over as CEO.
* These figures show that dividing Telstra Ops alone into a two-tiered workforce (one cheaper than the other) will save Telstra up to $37 million over three years.
* It says over the graph, “Assumes incentive pay equals productivity gains.” This shows that HR will be expecting you to work harder in order for the company to make those savings.
(NB. All slides in this post are copied without alteration from Telstra’s leaked documents.)
What can you do?
This leak is a huge revelation.
* Sign up to receive email updates as we find out more
* Share your questions and concerns with us: Telstra@actu.asn.au or call our workers’ helpline on 1300 362 223
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4 Responses to “Leaked slides 2: Telstra wants you to work harder, and take a real pay cut”
Got something to say?
Anyone working at Telstra is already aware of their complete lack of ethics, nepotism, and strong-arm tactics.
The root cause is: The collusion between the past government and Telstra to reduce rights and union representation. It has reduced the membership numbers to the point that in most areas, the workers hardly have any collective leverage any more. That does not mean we cannot win, we just have to change our strategy - like this:
We request to have time to get this agreement checked by experts (Delay tactic - allowed by IR legislation). We simply claim it is being read by a legal representative. When that fails to mollify them, claim it is being submitted to the Fairness commission (by our representative) as a “sole claim for advisement” (they are 12 months behind hearing these claims already!)
If the agreement is not returned, it is neither accepted nor declined. Finally when the time runs out, refuse to accept it.
Any attempt to circumvent this delay will now empower the union to proceed legally against Telstra for :
1. Harassment of workers.
2. Refusing employees the right to review (contracts)
3. Discrimination against workers - you have a legal right to get a contract checked and they have no right to refuse you or act on that contract until you refuse it.
But the ultimate satisfaction for us is - this delay and legal arjie-bargie will cost Telstra far more that any savings in their agreements. Poor Ole Sol will be tearing his hair out because the whole process will be in limbo for ages and we all know how Telstra hates indecision at senior Manglement (LOL).
To really secure this we need to get 50% of employees to agree to let the union bargain for them, whether they are paid members or not.
Also on one floor at Telstra in Latrobe St, the employees have all been told they cannot receive any emails that are not work related and both the employee and their 1-up manager will risk dismissal. All the staff are very aware that the timing of this is to thwart communications with Union Reps and fellow members both within and outside the workplace.
Solution - Let’s send them all to our mate Ol Sol and ask him to pass them on. We’d all love to see him fired - after all he has to leave soon before he drowns in all those cash bonuses!
It is amazing how they will not NEGOTIATE with staff union representatives’ for a fair out come paid increase and also to have access to their Unions.
It’s like one of those old Westerns, like “Custers Last Stand”. With Telsta HR, under attack, pulling their horses and wagons into a circle around that Old Chuck Wagon Workchoices….. They died with their boots on.
Speaking of Old Westerns…. riding off into the sunset went Phil Burgess, to be replaced by former Howard staffer David Quilty…..not a good week for Telstra HR and Telstra PP&C!
Thanks. Good news. I’ll become your constant visitor and RSS subscriber.