Telstra denies -secret" outsourcing plans, staff cuts - News - Communications

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This story was printed from ZDNet Australia.
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Telstra denies -secret" outsourcing plans, staff cuts

By Rachel Lebihan, ZDNet Australia
January 23, 2002
URL: http://www.zdnet.com.au/news/communications/soa/Telstra-denies-secret-outsourcing-plans-staff-cuts/0,130061791,120263097,00.htm

Telstra has thrown out federal Opposition claims that it's secretly planning to outsource its maintenance and services division, which could have implications for up to 10,000 staff, describing the claims as -mischievous".

Shadow Minister for Communications, Lindsay Tanner, has asked the country's dominant telco to please explain -secret plans" to outsource core telecommunications network service operations, including service installation, fault repairs and line maintenance. Labor's claims come at a time when Telstra is nearing the end of a planned two-year 10,000 job-shedding program, announced in March 2000.

In a previous interview with ZDNet Australia, Telstra refused to comment on Union claims that just 2000 jobs have been culled since its announcement, saying it was -on track" with the requisite 10,000 cull.

Telstra today denied it had any intention to outsource the service and maintenance of its telephone network.

-There are no secret plans to outsource Telstra's technical workforce or reduce jobs," a Telstra spokesperson said. "To suggest that this trial is centred around outsourcing or job reduction is completely inaccurate and mischievous."

However, she conceded that the telco was in the early stages of considering a trial -which might help us identify ways to further improve service delivery to our customers".

The trial will consider the concept of having one workgroup responsible for one specific geographic area, as currently up to seven workgroups could be working in one suburban street, she explained.

The spokesperson could not rule out the possibility that it could lead to job losses or the outsourcing of maintenance work, saying: "it would be really premature to talk about that".

Labor's Tanner said outsourcing Telstra's network services raises further concerns about the standard of services for regional Australians.

-Cutting wages and conditions may lead to greater efficiency in company accounts, but not in the real world of delivering services. At a time when Telstra is under criticism for declining capital investment and poor network service levels any attempts to outsource core network operations warrants the utmost public scrutiny," he said.