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CWU: Your Voice in Enterprise Bargaining |
CWUnion: Your Voice in Enterprise Bargaining
During the last week, the CWU has been holding membership meetings as well as attending Telstra staff briefings on the proposed new Telstra Enterprise Agreement 2012-2015.
This Update provides explanations to some of the more frequently asked questions that have come up at these sessions.
STRUCTURE OF THE AGREEMENT
What is the length of the Agreement?
This is a three year agreement. Telstra originally wanted a shorter agreement but the CWU successfully argued for a longer one. The CWU believes a longer agreement gives members more certainty and protection against potentially negative economic and political events.
Why are there still two different "classes" of employees?
Although the CWU wanted to see all Telstra employees employed on the same conditions, we could not reach agreement about pay and classification issues - particularly about performance-based pay.
Telstra and the CWU have agreed to continue discussions about these issues but in the meantime the status quo remains i.e. we still have "Workstream " employees (those currently on Category 1/Part A of the collective agreements) and "Job Family" employees ( those on Category 2/Part B or on AWAs/ITEAs).
PAY AND SUPERANNUATION
Why are the pay rises lower than those in the last EA and ECAs?
The 4.5-4.0 % pay rises in the last collective agreements reflected a number of factors including some "catch up" from the low rises (2.5%) in the 2005-08 Agreement and a higher rate of growth in the cost of living at the time the last EA and the ECAs were being negotiated/offered (4.5 % and 5% in the June and September 2008 quarters respectively).
At present inflation as measured by the Consumer Price Index is quite low - only 1.2% in the June quarter. If inflation remains at this low level over the life of this Agreement the real (i.e. over and above inflation) pay rises in the Agreement would in fact be higher than the last ones.
Of course there is no guarantee that inflation will not start to rise again. That is one of the reasons -along with Telstra's recent return to profitability - the CWU argued for a larger rise.
In the end what we have is a rise that for most CWU members comes out at an average of just over 4% a year once the 2.37% "catch up" and the effects of compounding are factored in. That should represent a significant increase over and above rises in the cost of living over the next 3 year
What about the gap between Category 1 EA and Part A ECA employees' pay? Has that been removed?
Not entirely. The 2.37% payment to Category 1 EA employees at the start of this Agreement will align the EA and ECA company rates. But the actual pay rates of former ECA Part A employees will continue to be higher than those of other Workstream employees.
This is because ECA Part A employees received a performance-based rise outside the formal ECA agreements in October 2011 which kept them ahead of the EA rates. The CWU was not part of that decision.
That rise did not change the company rate but counted as actual salary- not just as a bonus. That had the effect of preserving the pay gap that arose during the 2008-2010 dispute.
This time the CWU was able to negotiate a partial but not a full catch up for its EA-based members. To close the wage gap totally would have meant either:
From the CWU's point of view we would of course have liked to close the pay gap completely. But we judged that, on balance, pursuing this goal would have involved potential risks and costs to members that outweighed the likely benefits we could gain.
I am currently on Part A of an ECA? What happens to my pay?
Part A ECA employees receive the full pay rise schedule i.e. 3.5%, 3% and 3%, paid on their actual salary.
I am currently on Part A of the ECA. Can I move back to the EA and what effect will this have on my pay and conditions?
There are no longer any separate ECAs and EAs. Instead there is one agreement with Workstream and Job Family employees.
If you were previously on Part A of an ECA you automatically become a Workstream employee - unless you choose otherwise.
You will have the same conditions as other Workstream employees but your pay rise will be applied to your current actual salary, not the company rate.
Why are we moving to Telstra's Fixed Remuneration system next year?
Telstra wants to create one pay system across the company. There are several reasons for this, including of course its preference for its performance-based "Job Family" pay model. But there are also administrative advantages in paying everyone the same way.
The CWU has not accepted Telstra's performance-based pay system. That is why there are still two different pay and classification "models" in the Agreement - the Workstream and the Job Family.
But the CWU agreed that for administrative purposes Workstream employees' pay could be packaged up into a total sum called Fixed Remuneration as long as the components of that total are clearly identified.
The Agreement commits Telstra to providing each employee with a summary of his/her Fixed Remuneration and the way it has been calculated. (See Appendix B.)
There are in fact advantages for Workstream employees in moving to the Fixed Remuneration model.
I already get a 10% employer superannuation contribution. Will I get any further payments into my superannuation under this Agreement?
No. But you will receive a payment equivalent to the ones that employees currently getting 9% will receive. It will be paid to you as take home pay in instalments over the 3 years of the Agreement.
I am on a defined benefit super scheme. Will I get the extra payment?
The "deemed" employer superannuation payment in the defined benefit scheme is already above 10%. Employees on defined benefit superannuation will receive the extra 1% payments as take home pay in instalments over the three years. Telstra will also ensure that its contribution rate in the scheme never falls below the new minimum threshold at any time.
REDUNDANCY
Does the new emphasis on staff retention mean that I can be forced to accept redeployment?
No. Telstra cannot force you to accept redeployment.
Participation in the redeployment programme is mandatory and the pay you receive during this period (4 weeks or, in the case of employees made redundant through site function closures, 6 weeks) in effect replaces the former external job search ($4,500) and two week early leaver payments (though of course you work for it).
But if Telstra cannot find you a job you want after that time you will be made redundant and will receive all your entitlements. In special circumstances you may also be able to leave the redeployment process early.
Initially Telstra did propose a scheme that amounted to compulsory redeployment but this forms no part of the final agreement.
OVERTIME AND PENALTY RATES
There is no mention in the Agreement of certain technical staff receiving double time for all time worked after 11pm through to 7 am or of the minimum overtime payments when overtime work is not continuous with ordinary hours? Have we lost these entitlements?
No. This is an overtime drafting omission. There is no intention to remove this entitlement from employees to whom it currently applies.
Telstra has written to the CWU confirming this position. The CWU is considering ways to ensure that this commitment is enforceable over the life of the Agreement.
REST BREAKS: VOICE SOLUTIONS
Why have there been changes to the rest breaks in Voice Solutions call centres?
Telstra wanted changes to these rest breaks because they considered that call patterns and work intensity has changed significantly in these centres. CWU members say this is not the case.
The CWU has made written representations to Telstra on this question which involves important health and safety issues. Telstra has indicated it will respond to the union early next week.
21 September 2012
CWU RECOMMENDS ACCEPTANCE OF NEW TELSTRA AGREEMENT
The CWU will recommend that members vote to accept the proposed Telstra Enterprise Agreement 2012-2015 following a decision to that effect by the Divisional Executive on Monday 10 September.
The union is currently preparing materials for circulation to members and other employees explaining the reasons for this recommendation.
Bargaining Update #19 and the next CWU E-bulletin will contain an overview of the Agreement from the CWU's perspective and an assessment of the total wages and conditions package that is being put to employees.
Over the next two weeks, CWU officials will also be attending employee briefings and arranging union meetings so that members have the opportunity to discuss the terms of the Agreement in detail.
The ballot for the Agreement will be between 27 September and 3 October.
In the end, it is Telstra employees themselves who will decide, through a vote in that ballot, whether or not to accept the Agreement.
On balance, however, the CWU considers that the Agreement represents a good outcome for its members after what have been prolonged but generally constructive negotiations.
12 September 2012
Negotiations for the next Telstra Enterprise Agreement have now been concluded.
The parties are still going over the draft Agreement to check for any errors of wording, but basically all outstanding issues have been finalised. The full Agreement should be available to Telstra employees next week.
Pay Offer
The pay rises in the Agreement are the same as those reported in Update #15 i.e. 3.5%, 3% and 3% over the three years of the Agreement, with a further initial 2.37% for Category 1 EA employees to align their company rates with those on Part A of the ECAs.
Workstream employees will get these rises in full. Job Family employees may get more or less than the full rise depending on their performance.
Other payments will be available through current incentive schemes and performance-related bonuses.
Following the 23 August meeting between the CWU and Telstra management to discuss the pay offer, Telstra has agreed to include specific commitments in relation to two such schemes - the Customer Satisfaction Bonus and Zing - in the agreement.
Other issues
There have been no major changes to proposed conditions of employment since the CWU last reported to members.
The last few meetings have been spent largely in "tidying" up the Agreement. During this time, however, the CWU has been able to negotiate some improvements to entitlements:
A total package
The CWU has always said that we would look at this Agreement as a total package and either recommend it to members - or not - on that basis.
On Wednesday 5 September, the CWU Telecommunications Council agreed to recommend to Divisional Executive that the CWU endorse the Agreement, subject to acceptable finalisation of a number of matters (including those mentioned above). The CWU Divisional Executive is scheduled to meet on Monday 10 September to consider this recommendation.
What happens next?
Once Divisional Executive has determined its position on the EA, it will inform members and provide reasons for its decision together with a full explanation of the Agreement.
Under current law, however, the Enterprise Agreement is actually an agreement between Telstra and its employees, not between Telstra and the Telstra unions.
This means that once negotiations are concluded, it is up to Telstra to put the wheels in motion for a ballot of the approximately 20,000 employees who will initially be covered by the agreement. It is anticipate that the ballot for the agreement will be held by the end of the month.
Telstra has indicated that it intends to begin briefings of employees on the Agreement on 13 September. The CWU will be seeking to participate in these briefings as well as conducting its own membership meetings at a state branch level.
Members should contact their state branches for further information about these sessions.
7 September 2012
Since the last Bargaining Update (which reported on Telstra's pay offer) meetings to negotiate the next Telstra EA were held on 23 August and 30 August and further meetings are scheduled for the week beginning Monday 3 September.
Apart from discussions over the pay offer, no major new issues have been raised in these discussions. The focus now is on trying to finalise all the clauses of the new agreement with a view to producing a final draft as promptly as possible.
Pay offer: CWU representations
Bargaining Update #15 reported on the pay proposal put by Telstra on 16 August.
That offer proposes rises 3.5%, 3% and 3% to Category 1, Part A employees with an equivalent pay "pool" for Category 2, Part B and AWA/ITEA employees. The actual pay rises for these latter employees would depend on performance.
In addition, Category 1 (EA) employees would get a 2.37% "catch-up" payment to equalise the EA and (former) ECA company rates.
All employees will have the opportunity of earning further payment through performance-based bonuses (in the case of Workstream employees) or through incentive schemes (in the case of Job Family employees).
There has been no change to the offer since that Update was issued. However on Thursday 23 August, the CWU and other union representatives met with Tracey Gavegan, Group Managing Director, Human Resources and Robert Nason, Group Managing Director, Business Support and Improvement (the architect of Project New) to put our case for an improved pay rise.
Also present were Paula Heath and Julian Clarke from Telstra HR and representatives of the CPSU and APESMA.
The CWU highlighted the fact that Telstra employees had carried much of the burden of cost-cutting during the "transformation" process initiated by Sol Trujillo in 2005 and continued under David Thodey.
With Telstra now returning to positive earnings and profit growth (the first since 2009), the CWU argued that it was time to recognise that contribution through a better pay offer.
There has as yet been no formal response by Telstra to this presentation.
Other issues
The parties met on both Thursday 23 and Thursday 30 to continue fine-tuning of clauses such as those concerning higher duties, travel conditions (log on arrangements, ETT ) and scheduling.
Work is also continuing on re-wording of the agreement so as to make its meaning as clear and straightforward as possible. Simplification of this kind was one of the initial objectives of the negotiating teams.
A total package
The negotiations are now coming to a point where it is possible to see the shape of the full agreement, not just its parts.
It is this total package that CWU members and other employees will need to consider when
deciding whether to accept the agreement or not.
Similarly, the CWU will be basing its recommendations to members on the total outcome of negotiations, including the final pay offer. We would hope to be in a position to do this in a few weeks time, depending of course on whether or not bargaining can be concluded within the time frame the parties are aiming for.
The aim remains an October pay rise for all employees.
Telstra Pay Offer
For a number of weeks, Telstra and the unions' Single Bargaining Unit have been negotiating over the size of the pay rises to be paid over the life of the next Enterprise Agreement. A number of proposals and counterproposals have been made by the negotiators in an attempt to find a figure that will be acceptable to both sides.
At the bargaining meeting of Thursday 16 August, Telstra tabled an offer which it has indicated it regards as representing a fair and final settlement of these negotiations around pay.
The offer, as set out below, would deliver pay rises of 3.5%, 3% and 3% over the three years of the agreement to all "Workstream" (i.e. Category 1, Part A) employees and the same increases to the pay "pool" for "Job Family" employees.
The actual pay rises for Individual "Job Family" employees would depend on their performance and could be either more or less than the "pool" average.
In addition:
Pay offer: Workstream employees
In addition, increased employer superannuation contributions will be paid as follows:
Performance bonuses will be available as follows:
Pay offer: Job Family Employees
Proposed pay structure: Workstream employees
There will initially be no change to the way Workstream employees are paid (other than the equalisation of the Category 1/Part A company rates). Telstra proposes, however, that from 1 July 2013, all Workstream employees will move to the Fixed Remuneration system of pay.
This means that from this date you would receive your annual leave loading as part of your regular pay (but on top of the company rate). Your employer superannuation payments would also form part of your Fixed Remuneration.
The CWU estimates that there are fewer than 2,000 Part A ECA employees, so maintaining the pay differential represents no large cost to Telstra.
Date from which increase applies Increase
1 October 2012 2.37%
1 October 2012 3.5%
1 October 2013 3.00%
1 October 2014 3.00%
*Represents the actual current difference between Category 1 and Part A pay rates for the same classification level.
Date Increase
1 July 2013 0.25%
1 July 2014 0.25%
1 July 2015 0.5%
The increase will be paid directly into the accumulation fund for those on this form of superannuation. Discussions are continuing about how those on defined benefit schemes will be paid.
Exceeds Significently Exceeds
Expectations (EE) Expectations (SE)
Performance Year 1
(1 July 2011 - 30 June 2012) 1% 2%
Performance Year 2
(1 July 2012 - 30 June 2013) 1% 2%
Performance Year 3
(1 July 2013 - 30 June 2014) 1% 2%
Performance year Guaranteed pay pool Increases effective
1 July 2011-30 June 2012 3.5% 1 October 2012
1 July 2012-30 June 2013 3.00% 1 October 2013
1 July 2013-30 June 2014 3.00% 1 October 2014
In addition, Telstra will increase employer superannuation payments as follows:
Date Increase
1 July 2013 0.25%
1 July 2014 0.25%
1 July 2015 0.5%
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