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Telstra Slammed For Staff Pay Cuts

The CEPU Communications Union has slammed Telstra for imposing several staff ‘pay cuts’, following news the telco will slash a quarter of its workforce (~8,000 jobs) by 2022. It also supplants last week’s major management re-structure.

The union claims Telstra has forced staff to accept a drop in take-home pay, reflecting “shocking disrespect” in the current internal climate.

One portion of Telstra’s workforce will reportedly receive no guarantee of a wage increases, whilst ‘Job Family’ employees will gain a 1.5% increase to overall pay pool.

For ‘Workstream’ staff, a 1.5% wage increase is reportedly below the current annual cost of living (~2%), and significantly below the average wage rise of 2.7%.

The lack of guarantee claims to leave wage movements “solely in the hands of local management”, providing uncertainty for Telstra staff.

CEPU Communications Union National President, Shane Murphy, asserts the decision shows “shocking disrespect” to staff feeling the “trauma” of mass job cuts.

Last week Telstra announced a major re-shuffle of its management team, replacing several ‘C-level’ executives with a slew of new faces.

As previously reported, the telco has already commenced its massive redundancy process, liaising with employees about proposed cuts.

“The company has just announced the biggest job purge in Australian corporate history since Ansett’s collapse and now to add insult to injury, workers are being asked to take a pay cut,” affirms Mr Murphy.

“Telstra CEO, Andy Penn, is completely out of touch with reality. He clearly has no concept of what life for your average worker, who is just trying to pay their bills and get by, is like.”

As per the CEPU, Telstra has severed talks with Unions, going directly to employees for its endorsement via a ballot, which opens today.

Murphy claims the proposed enterprise agreement represents a significant risk to Australia’s economy.

He also predicts internal sentiment to birth negative follow-on effects, with customer service likely to be hampered:
“Telstra customers should be incredibly worried about the way the current management team is tearing the telecommunications company apart. It’s impossible to see how customer service won’t suffer as result of these moves.”
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