For Pete’s sake!

Date: 14 January 2004

Union backs Treasurer Costello on IT jobs

The CPSU has welcomed comments by Federal Treasurer, Peter Costello about the loss of Australian IT jobs to India. The cuts will effect 450 staff employed by IBM working on Telstra projects. It is expected that at least 1500 more Telstra IT jobs will be "off-shored" to low wage economies such as India and China this year.

The CPSU's Stephen Jones says: "We strongly agree with the Treasurer that Telstra needs to 'look carefully' at this decision. We also agree that this work should stay in Australia".

"Given that the Commonwealth is still the major shareholder in Telstra, Peter Costello has an opportunity to make a difference. We are calling the Treasurer to exercise the Commonwealth's 51% share in Telstra, and their influence as a major user of Telstra services, to ensure Australian jobs remain in Australia," said Mr Jones.

"The Government can and should act to support our local IT industry before it is undermined completely by off-shoring," said Mr Jones.

When the CPSU went public with concerns about IT job losses to India last year, Telstra claimed "...no Telstra jobs have been lost or will be lost as a result of our IT sourcing arrangements" with Indian companies.
"That claim is looking very shaky right now" said Mr Jones. "While Telstra may argue that they need to be internationally competitive, let's not forget Telstra is Australia's most important and profitable company. It has obligations to the community who have supported it over many years and to their staff whose ideas and energy have made the company so profitable."

For comment: Stephen Jones 0417 261 152

CPSU Media officer: Dermot Browne 0408 265 081

For further information

Contact:	Stephen Jones
Phone:	1300 137 636
Contact Mobile:	0417 261 152
WWW:	http://www.cpsu.org.au/campaigns/Telstra/index.html

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