Sol’s “slash and burn” at Telstra

Date: 04 May 2009

More than 300 Telstra workers will lose their jobs next month alone as outgoing CEO Sol
Trujillo "slash and burns" across the organisation ahead of his June 30 departure, the Communications Electrical and Plumbing Union (CEPU) warned today.

The CEPU said that the majority of jobs would be lost in Perth, Melbourne and across NSW and would affect network and technical services.

Full details of job losses can be found at CEPU - Connecting our Community.

CEPU national president Ed Husic said Mr Trujillo's so-called Transformation Program would turn Telstra "into a hollowed log".

"Hundreds of Telstra will lose their jobs as Mr Trujillo buckles himself into his first class seat back to the US," Mr Husic explained.

"Customer complaints have risen 240 per cent during Mr Trujillo's tenure as CEO and, in response, Telstra has informed unions in the last week that it will cut or outsource another 100 jobs in call centres.

"And based on Telstra's redundancy notices lodged with us, we estimate that up to 300 jobs will be cut in the next month, while customers are forced to wait for installs, fault repairs or general service when they ring for assistance.

"Ironically, senior management pocket 'performance bonuses' while our frontline members cop customer anger and frustration for the corporation's performance failings."

The CEPU recently urged Telstra to drop its program of job cuts to protect its skills base in light of the Federal Government's recent shift in direction on the National Broadband Network project - with 25,000 people needed to work on the NBN project.

"There will be a heavy demand for skills that we simply won't have," Mr Husic said.

"Our research shows that 85 per cent of people made redundant by Telstra don't remain in the industry - a massive skills drain.

Mr Husic also highlighted how more than 100 workers across Australia will lose their jobs as Telstra outsources many of its vital customer services operations to the multi-national IBM.

Telstra has admitted that it is "streamlining" corporate planning, accounting and administrative functions by using IBM - at the expense of local Telstra workers.

"In these tough, economic times, Telstra has chosen to sell out its Australian employees - it's an absolute disgrace," Mr Husic said.
"Telstra will now start cutting well over 100 jobs in Sydney, Melbourne, Adelaide, regional Victoria, Brisbane and Perth - that's 100 jobs taken from Australian families."
Mr Husic said the public should be very concerned about the impact of the move on the security and privacy of customer information.
"Our representatives at the meeting asked if information and jobs would be taken offshore under the move," he said.
"For example, we asked if confidential customer information would be stored and maintained by IBM overseas? Telstra couldn't answer this.
"This is a serious issue - and if this off-shoring occurs it will reinforce our view that the Federal Government should reform the Privacy Act to ensure companies are required to retain vital and confidential customer details within our borders."
According to the CEPU, 118 employees would be affected by Telstra's latest cost-cutting drive across Australia over the next 10 weeks.
Workers affected include Quayside (Melbourne), Pirie Street (Adelaide), George Street/Pitt Street (Sydney), Brisbane, Perth and at 242 Exhibition Street and Shepparton (Victoria).

For further information

Contact:	Ed Husic, National President
Union:	CEPU
Phone:	0437 371 372
WWW:	http://www.cepuconnects.org/

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