The Guardian 14 November, 2007
New agreement
threatens redundancy rights
A thorough analysis of Telstra’s new agreement by CPSU’s (Community and Public Sector Union) legal and technical experts has revealed serious problems for staff in relation to redundancy arrangements.
The union says that as Telstra intends to cut a further 6000 jobs over the next few years, it is crucial that all staff understand the implications these changes will have for them, before they vote.
The first problem is the introduction of a new clause that will make it harder for staff to access retrenchment benefits. In the new agreement, retrenchment benefits are no longer payable where Telstra obtains…"an offer of alternative employment either within Telstra, or with another employer."
The second problem is Telstra’s plan to take most current redundancy arrangements out of an agreement and recreate them as Telstra policy. At first glance, this may seem like a harmless administrative change.
But the reality is Telstra’s new agreement drastically reduces Telstra workers’ rights. Under the current union agreement, workers have access to enforceable rights in relation to redundancy arrangements, including the option of a $4500 external job search payment, six week internal Telstra job program, guarantee of pay in lieu of notice and others.
Under Telstra’s proposed non-union agreement most of workers’ redundancy conditions become Telstra policy which can be changed by management whenever they like. Concerns about Telstra’s attitude to policy are strengthened by Telstra’s own words: "To avoid doubt, the policies do not form part of this Agreement or the contract of employment for Employees and are not binding on Telstra."
The union warns that if workers support management’s new agreement, they will be giving up their right to enforceable redundancy conditions. These are conditions which Telstra are currently obliged to honour and can not change without the consent of the workers. By voting NO to the proposed agreement, staff will retain their current redundancy entitlements and new arrangements can be negotiated. In a proper negotiation process, staff will have a say and their interests will be represented by their union.
In a special advice for the CPSU, respected industrial law firm Slater and Gordon state: "As the Policy does not form part of the Agreement, it goes without saying that a breach of the policy by Telstra cannot be enforced as a breach of the Agreement. …It is open to Telstra to unilaterally change the Policy at its will."