EA 97 DRAFT 1

TELSTRA CORPORATION 1997/98 ENTERPRISE AGREEMENT

This Agreement will be known as the Telstra Corporation 1997/98 Enterprise Agreement.

2. Parties Bound and Application

2.1 This Agreement is binding on Telstra Corporation Limited (ACN 051 775 556), (the "Company"), the unions referred to in clause 2.2 and all employees who are employed by the Company in the classifications specified in the awards listed in Attachment 1A.

2.2 The unions party to this Agreement are: Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU); Community and Public Sector Union (CPSU); Association of Professional Engineers, Scientists and Managers, Australia (APESMA); Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AFMEPKIU).

3. Operation of the Agreement

3.1 This Agreement replaces and wholly supersedes the Telstra Corporation 1995/97 Enterprise Agreement and all of its predecessor Enterprise Agreements.

3.2 Subject to relevant legislative provisions, this Agreement overrides the operation of any award or agreement binding on the Company to the extent of any inconsistency.

3.3 The Company may enter into an Australian Workplace Agreement (AWA) with any employee covered by this Agreement. The AWA may operate to the exclusion of this Agreement or prevail over its terms to the extent of any inconsistency.

3.4 An agreement certified subsequent to, but during the period of operation of this Agreement, may override this Agreement (in whole or in part). Accordingly, this Agreement permits such a subsequent agreement to apply without exclusion over any of the matters already addressed in this Agreement.

4. Duration

The nominal expiry date of this Agreement is 12 months following the date of certification.

5. Closed Agreement

For the life of this Agreement, the parties agree that there will not be any further claims made for increases in wages (whether related to National Wage Case decisions or not) or other conditions of employment relevant to employees covered by this Agreement.

6. Consultative Arrangements

6.1 This Agreement recognises the importance of consultation between Company management, employees and unions in the implementation of the Company's business priorities. Significant improvements in Telstra's operations - particularly in the provision of efficient customer service through streamlined work processes, systems and growth in volumes resulting in unit cost reductions - must be achieved in the life of this Agreement.

6.2 Where the Company proposes to introduce significant business initiatives or major changes which have a demonstrable impact on employees, the Company will consult with the employees who may be affected by the proposed changes and their union as early as practicable. A demonstrable impact on employees will arise in circumstances including major changes in technology or the composition, operation or size of the Company's workforce or in the skills required, the elimination or diminution of job opportunities.

6.3 The Company will consult with the employees affected and their union on the introduction of the changes referred to in clause 6.2, the effect the changes are likely to have on employees, and where possible the measures to avert or mitigate the adverse effects of such changes on employees, and will give consideration to matters raised by the employees and/or the unions in relation to the changes.

6.4 Where consultative committees operate within the Company and they continue to have ongoing support from both management and unions, such committees can be forums for consultation on a wider range of matters than those mentioned in clause 6.2 (e.g. business plans). Additional consultative committees may be established by agreement between the parties. Consultative committees are not decision-making bodies.

7. Dispute Avoidance/Resolution Procedure

7.1 The parties are committed to avoiding industrial disputation.

7.2 The Company aims to provide a productive, rewarding, safe and non-discriminatory work environment for its employees. This environment should be characterised by co-operation, mutual respect and open communication between employees and managers.

7.3 Where employees experience work-related problems, in the first instance the matter may be raised with their immediate supervisor who will attempt to resolve the problem within a reasonable time, i.e. within two (2) working days. The Company acknowledges the right of employees who are union members to raise the matter with their union's representative who may become involved in the discussion at any stage of the process.

7.4 If the matter cannot be resolved with the employees' supervisor, it may be taken to the supervisor's manager who will seek resolution within two (2) working days, failing which the assistance of a more senior manager may be sought.

7.5 If the matter has not been progressed to the satisfaction of the parties within six (6) working days from the time it was first raised with the supervisor, it may be referred to the head of the Business Unit and the General Manager-Employee Relations of the particular Business Unit (or to the Director-Industrial Relations for matters impacting the wider Company) and principals of the union for resolution within five (5) working days.

7.6 If the matter still remains unresolved, the parties may refer it to an agreed mediator which may be the Australian Industrial Relations Commission ("the Commission"). The role of the mediator is limited to providing assistance to the parties in an attempt to address and, if possible, resolve the matter in dispute by mediation/conciliation as quickly as possible. The mediation process may, however, be extended by the consent of the parties involved in the dispute.

7.7 The parties agree that the Director of Industrial Relations and the relevant union officials may agree to waive these time limits in whatever manner is necessary to aid dispute resolution. However, the importance of the nominated management and union officials accepting responsibility for the issues within the agreed timeframes is also acknowledged by the parties.

7.8 Nothing in these procedures will: (a) prevent any party from exercising its rights under the Workplace Relations Act 1996 (the "Act")notifying a matter to the AIRC and seeking a hearing as soon as possible; (b) prejudice the position of a party in a genuine health and safety situation.

8. Award Simplification

8.1 Introduction

8.1.1 Telstra is currently bound by a number of different awards. This has resulted in unnecessary duplication and inconsistencies in terms and conditions of employment applying throughout the Company.

8.1.2 The previous (1995/97) enterprise agreement reflected the legislative requirement for parties to review awards. This requirement has been given added impetus with introduction of the Workplace Relations Act 1996. An important change introduced by the WR Act is that awards must be "stripped back" so that they only deal with "allowable award matters". The parties to awards are obliged to attempt to reach agreement on the "stripping back" exercise if arbitration is to be avoided.

8.1.3 The parties agree to pursue a "core award" objective (as outlined in clause 8.2) as the means by which the award simplification and stripping back exercises envisaged by the WR Act will be addressed by the parties prior to 31 March 1998.

8.2 Core Award

8.2.1 The parties have commenced the process of reviewing the Company's existing award structure with a view to the creation of one "core award" to be known as the Telstra Corporation Limited Award 1997. In the time available prior to the certification of this Agreement, the review process was not completed.

8.2.2 The core award will, amongst other things:
(a) replace and wholly supersede all existing awards with a single, stand alone award;
(b) cover only employees who are appropriately subject to award coverage and exclude inappropriate conditions from application to particular classes of employees;
(c) deal only with the allowable award matters prescribed by the Company's awards as at the date of certification of this Agreement;
(d) standardise and simplify conditions of employment throughout the Company by containing a single and standard minimum provision concerning each allowable award matter;
(e) contain a single job evaluation system and a simplified job classification structure;
(f) provide a safety-net of fair minimum terms and conditions of employment for employees;
(g) not include matters of detail or process that are more appropriately dealt with at the workplace or enterprise level;
(h) not prescribe work practices or procedures that restrict or hinder the efficient performance of work;
(i) not contain provisions that have the effect of restricting or hindering productivity, having regard to the needs of the business and fairness to employees;
(j) enable the employment of regular part-time employees; and
(k) reflect the requirements and objects of the Act.

8.2.3 As part of the negotiation for this Agreement, the parties agreed that changes concerning dispute avoidance/resolution (clause 7), classifications and grading (clause 9), leave (clause 10), hours of work and related arrangements (clause 11), shift work (clause 12) and allowances (clause 13) will form part of the core award in the manner envisaged by clauses 8.2.4 and clause 9.

8.2.4 To assist in the finalisation and making of the core award and the achievement of the objectives set out in clause 8.2.2, the parties agree:
(a) to immediately upon certification, take all steps necessary to vary relevant awards and agreements to reflect the provisions in this Agreement relating to dispute resolution, annual leave, hours of work-related arrangements, shift work, allowances and single job evaluation system (Hay System);
(b) to conclude negotiations on the core award by 31 March 1998 and such negotiations are to be:
(i) conducted in good faith having regard to the provisions of the WR Act and the principles, if any, determined by the Commission with respect to the award simplification process; and
(ii) scheduled at least once every fortnight from the date of certification of this Agreement to the conclusion of the negotiations.
(c) to immediately after the conclusion of the negotiations (being 1 April 1998 or such earlier time as agreed) jointly apply to the Commission to seek expeditious arbitration on the outstanding matters related to the core award on the basis that:
(i) the parties have made reasonable attempts to reach agreement about how the awards should be varied and the treatment of matters that are not allowable award matters;
(ii) the arbitration will be conducted in accordance with the principles referred to in this Agreement;
(iii) the outcome of the arbitration will be a core award dealing with allowable award matters in a manner consistent with the principles referred to in this Agreement. Accordingly, existing awards binding on the Company will be set aside to enable creation of a core award.

8.3 The unions party to this Agreement will co-operate with the Company to meet the objectives outlined in this Agreement and will not allow demarcation boundaries to hinderagree that they may retain existing coverage and will not seek to extend this or demarcation boundaries following certification of this Agreement or the transition to the core award.

9. Classifications and Grading

9.1 Introduction

9.1.1 As part of the negotiations for this Agreement, the parties agree to:
(a) introduce a single job evaluation system (Hay System) to replace the number of different grading methods which currently operate in the Company's awards and agreements; and (b) simplify and rationalise existing job classifications through the implementation of "work streams" referred to in clause 9.2.

9.1.2 The single job evaluation system (Hay System) will operate from the date of certification of this Agreement. Negotiations concerning the simplification and rationalisation of job classifications (with the exception of the Customer Service Workforce stream) will be completed in accordance with the principles contained in clause 9.2 prior to the nominal expiry date of this Agreement.

9.1.3 The parties recognise that the matters referred to in clause 9 will involve changes to existing arrangements. Consequently, it is agreed that the parties will:
(a) upon certification take all steps necessary to vary relevant awards and agreements to reflect the immediate introduction of the Hay System for evaluating and grading work classifications; and
(b) prior to 31 March 1998 take all steps necessary to implement the Customer Service Workforce structure (including related translation procedures) and to vary relevant awards and agreements to reflect the Customer Service Workforce provisions (as specifically outlined in clause 9.3); and
(c) take all steps necessary to vary relevant awards and agreements to reflect the introduction of simplified job classifications based on work streams ideally by 31 March 1998, but no later than 31 October 1998;
in order to ensure that the provisions of this Agreement (and any subsequent agreement reflecting the arrangements referred to in clause 9) are capable of operating throughout the Company.

9.2 Simplified/Rationalised Job Classifications

9.2.1 Existing job classifications will be arranged into work streams which will encourage more flexible deployment and use of the Company's employees to meet the needs of customers. The first work stream will be the Customer Service Workforce and this work stream will operate prior to 31 March 1998.

9.2.2 The development of the other workstreams will follow the same principles applied during the development and implementation of the Customer Service Workforce. The further workstreams under consideration by the Company are: Infrastructure; Customer Contact; Systems and Customer Solutions; Marketing; Sales; Operational Support; and Corporate.

9.2.3 Jobs within the workstreams will be graded using the Hay System and will be arranged into bands. The number of bands in each work stream will be determined by the grading system.

9.2.4 There will be no mandatory qualifications for any band. Where a job requires employees to be licensed or to possess relevant permits or formal qualifications, those requirements will be specified in individual job descriptions.

9.3 Customer Service Workforce

9.3.1 This work stream covers the group of employees employed in all work associated with the design and construction of the Customer Service Network, and the End to End Repair, Maintenance and Installation of all customer services.

9.3.2. The bands of work will cover the range of existing classifications from Team Leaders and Specialists to entry level employees.

9.3.3 Competency standards and relevant training for each band in this work stream will be consistent with the Telecommunications Industry Competency Standards and the Telecommunications Industry Training Package and may be amended from time to time.

9.3.4 All appropriate training, both formal and by way of on the job experience will be provided and monitored through the Company's Performance Review and Development Process (PRDP).

9.3.5 All employees covered by the Customer Service Workforce will be translated into an appropriate work stream band.

9.3.6 The parties agree that immediately from the certification of this Agreement all employees within the scope of the Customer Service Workforce must work as directed by their Manager/Supervisor, provided that such employees possess the skills and abilities to perform the work. Upon translaaltion to the new structure, all employees' ordinary time salaries will be maintained at least at their existing level.

10. Leave

10.1 Annual Leave
Annual leave accrues on a pro-rata basis and may be taken by employees following such accrual having regard to the needs of the business.

10.2 Attendance
10.2.1 The parties acknowledge that some of the Company's other leave arrangements have resulted in sub-optimal workplace attendance. The parties agree to develop and introduce workplace based systems which will enhance attendance levels. This may require variations to awards or agreements binding the Company. Additionally, variations may be required to existing arrangements including, but not limited to:
(a) use of retrospective medical certificates;
(b) the application of management discretion.

10.2.2 The parties agree to take all steps necessary to implement an agreed "attendance action plan" before 1 January 1998. In the absence of agreement on the content of an action plan, the parties agree that any party's proposals for variation of existing award provisions concerning leave or attendance matters will be referred to the CommissionAIRC for arbitration before 1 April 1998 (or such earlier time as agreed) in the manner contemplated by clause 8.2.4 of this Agreement (subject to the matter being "allowable" for the purposes of s.89A of the Act).

Personal Carer's Leave [To be finalised after consultation with Brian Douglas]