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Leaked Slides: Telstra wants you to work harder and take a
real pay cut
Friday 15 August 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. Please
forward this email to your colleagues who may not
receive this e-Bulletin.
Download a full copy of the slides from our website
on:
http://www.cepu.org/news08/069.htm
Members without internet access can contact the CEPU
office for a copy of the slides.
Make sure your colleagues are signed up to receive
our e-Bulletins.
Share your views by emailing
feedback@cepu.org
Please contact Steve Dodd or Shane Murphy if you
require any further information on (02) 9893 7822 or
contact our workers' help line on 1300 362 223
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