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CONTRACTORS REVOLUTION On 14th March 2004, with a major PR event, Foxtel launched digital
Pay TV in Australia. The Foxtel theme was
There was a revolution - but not the one Foxtel expected.
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Update 30 March 2004: Independent contractors have returned to work and begun negotiations to secure reasonable conditions. Contractors are studying the time needed to complete the new work and this will become a basis for negotiations.
Telstra is reported to be training about 100 of its own workers to do the work currently contracted to the major contractors. Telstra's first attempt failed when hte contractors picketed the training centre. Telstra then moved to another site secretly. In an incredible statement, Telesta is reported to have said that a "company of our size needs the resources of our own people and others to manage peak loads". Telstra is the leading downsizer in the Asia Pacific Region.
Shane Murphy of CEPU has stated: "It's been pure arrogance the way these subcontractors have been treated. They haven't had a CPI increase for 5 years, their rates have gone backwards and their costs have gone up. We're currently doing a survey of the time taken to do a job, versus what they are being paid so everyone can get a clearer understanding. If there are not some genuine discussions this week, the CEPU will be reviewing its position for both Foxtel and Telstra subcontractors."
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Nyon, Switzerland 19 March 2004 Dear Colleagues, Union Network International, is the Global Union Federation with over 15 million members worldwide. UNI supports all Foxtel Subcontractors in their struggle for realistic pay for the work performed. The CEPU is affiliated to UNI and they have informed us of the struggles, we understand that the demands on Foxtel subcontractors have never been so high and the rewards been so little, the quality of customer service to consumers has deteriorated and this is to no fault of the loyal subcontractors that have helped the company progress where it is today. You have to face the customer complaints day in, day out. It is imperative that Foxtel pay a realistic amount for a fair days work and understand that new technology reduces the amount of jobs that can be done. Keep up the fight; union members worldwide are behind you in your struggle for a fair wage. Please keep us informed of any developments and anything we can do to assist. Yours sincerely, |
Shane MurphyCEPU Organiser representing the contractors 
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The Sub-Contractors, who install Pay TV and the new set top boxes, had been "screwed" long enough. Foxtel and a system of Telecom companies that deal exclusively with Foxtel - had cut payments and demanded more cuts. The problem surfaced in December 2003 when Telstra changed contractor companies. Telstra forced down prices, pursuing the cheapest contracts. The sub-contractors all changed to the new companies, but were most unhappy with the contract prices set by the companies. In what is considered to be a world first, the sub-contractors took action and joined a union, the CEPU. This is interesting legally, as can be seen in media reports. See Media Report - Dec 2003 This immediately got results, and an improved offer from the companies. Then in March 2004, Foxtel went digital - with a major PR event. However Foxtel have badly misjudged their resources. When customers phoned to convert to digital, many got waiting times up to 7 months away! The sub contractors were not properly trained. The new installations require a new set top box, and a telephone outlet at the set top box - for connections to Foxtel once a month - to download customer information and use. The installation times are much greater, but only small pay offers were imposed. See Rates set by the Companies The companies do not negotiate these. The contractors revolted. Many more joined the union - CEPU. And appointed bargaining agents from the union. They organised in all states and across all companies. They even went on unplanned holidays, first for 48 hours, then another 24 hours, then another 4 days. [As at 18 March, thay have been off the job for 1 week and will meet again next Monday] 
ABB contractors wanting a "fair go".
Others are joining the revolt. Nearly all cable and satellite TV contractors have joined the CEPU. And Broadband cable contractors have joined them. It has spread to every state in Australia. The contractors established a set of negotiating issues. See List of Claims - Cable TV and also List of Claims - Satellite TV. Foxtel has made an offer - See Foxtel Offer - 16 March 2004, but it was unanimously rejected. Then Foxtel promised in the media on 18 March to improve the offer! The sub-contractors will meet again on Monday 22 March. |
I attended the Sydney meetings on 17 and 18 March to interview some of the contractors Their stories are similar. They cannot afford to go to work. See Income of a Contractor
Several years ago they made money. Now Foxtel has gradually "screwed" them to the point where they cannot afford to go to work. Not only have rates been decreased, but Foxtel now requires them
- to pay their own insurances, including workers compensation, public liability and professional cover
- to pay for all materials
- to carry all the risks
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Foxtel is owned by three large companies Foxtel outsources its installation and Maintenance to Telstra who in turn outsource the work to 4 companies - they all make a profit in the chain - but not at the end of the chain. They four companies are |
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