Unions call for govt intervention on Telstra job cuts

Telstra’s announcement that it plans to slash 8000 jobs as part of a broad-based restructuring has sparked a number of concerned reactions.

The Communications, Electrical and Plumbing Union (CEPU) and the The Community and Public Sector Union (CPSU) have escalated their rhetoric in their objection to the proposal, calling the announcement “unacceptable” and a “national jobs emergency that can not be allowed to proceed.”

In a joint statement, the unions claimed that job cuts of this scale will severely undermine Telstra’s capacity to deliver high-quality services to customers, particularly those in rural and regional areas.

“It also sends a terrible message more broadly that workers in a high-tech, digital business like Telstra can be thrown on the scrap-heap so easily,” the unions said.

“The federal government must urgently intervene in this issue to retain worker confidence in the economy and use its power as a major consumer of telecommunications services to maximise pressure to protect these jobs.”

But during a doorstop interview, Minister for Communications Mitch Fifield gave no indication that the government is considering intervening.

Fifield said Telstra CEO Andy Penn has assured him that the workforce reduction will occur over a number of years, and that the company will give staff leaving the company the assistance they need.

Telstra has established a $50 million fund to allow some affected employees to be redeployed in new roles, and provide assistance to the rest.

Penn has also indicated that the job cuts will be focused on management and back-office areas, and Telstra aims to ensure the cuts do not degrade service quality.

“This is a difficult day for the staff of Telstra and our thoughts are very much with them,” Fifield said.

Victorian Minister for Industry and Employment Ben Carroll said the government stands ready to assist retrenched workers from the state through its Jobs Victoria – Workers in Transition service, which provides coordinated support including information about skills and training services for retrenched workers.

Those facing long-term unemployment will also be able to access tailored services through Jobs Victoria to help them get a new job.

Image credit: ©stock.adobe.com/au/freshidea

Please follow us and share on Twitter and Facebook. You can also subscribe for FREE to our weekly newsletter and quarterly magazine.