Telstra says no decision on job cuts - News - Communications

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This story was printed from ZDNet Australia.
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Telstra says no decision on job cuts

By AAP
September 14, 2005
URL: http://www.zdnet.com.au/news/communications/soa/Telstra-says-no-decision-on-job-cuts/0,130061791,139211740,00.htm

Telstra says it has not made any decision to cut 10,000 jobs, despite claims by unions and Labor.

Labor is demanding the government and Telstra release a secret report which is believed to outline the telco's plans to slash about 25 percent of its workforce of about 40,000.

The Community and Public Sector Union (CPSU), which first revealed the existence of the document, said the 104-page report by Telstra's chief operations officer Greg Winn raised serious questions for the government and the telco giant.

But in a statement to the Australian Stock Exchange (ASX), Telstra said while it was carrying out a major review of its operations it had not made any decision about job cuts.

"Telstra has previously announced to the ASX that it is undertaking a company-wide strategic review," Telstra company secretary Douglas Gration said in a statement.

"Telstra has also announced to the ASX that it has introduced a number of immediate measures to address the deterioration in the company's earnings outlook and that it will introduce further measures to drive earnings growth and reduce costs as the CEO completes his strategic review of the company's operations.

"Telstra has not taken any decision to cut 10,000 jobs, as stated by (opposition communications spokesman) Senator Conroy, or 14,000 jobs as reported in the media."

Senator Conroy has asked the ASX and corporate watchdog to investigate the document and whether Telstra has breached disclosure rules by not releasing it.

"Telstra is concerned that the ASX and ASIC disclosure and investigation processes are being used for political ends," Mr Gration said.

"Senator Conroy has referred to a 104-page document. Telstra is not aware of the specific document referred to.

"There are no documents of which Telstra is aware recommending job cuts of the magnitude referred to by Senator Conroy."

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