Telstra, unions agree on bargaining principles
Telstra chief David Thodey has signed an agreement with the telco's key unions outlining the principles that will guide negotiations over its new enterprise agreement.
David Thodey
(Credit: Suzanne Tindal/
ZDNet.com.au)
The document formalises the direction Thodey had indicated the telco would take in its future negotiations with unions as the groups work toward a new enterprise agreement. Thodey's discussions with the unions had already led to industrial action being called off at the telco.
The principles were agreed upon by Telstra; the Australian Council of Trade Unions (ACTU); the Communications, Electrical and Plumbing Union (CEPU); the Community and Public Sector Union (CPSU); and the Association of Professional Engineers, Scientists & Managers Australia (APESMA). Thodey and Telstra's HR group managing director Andrea Grant signed on Telstra's behalf.
Consensus over bargaining principles is set to play a critical role in coming weeks as the telco resets its enterprise agreement with a unionised workforce, which represents around 20 per cent of its 40,000 headcount.
CEPU president Ed Husic welcomed Telstra's agreement on bargaining principles. "After 13 years of conflict-driven laws, today marks the start of a new way for employers and unions to relate and deal with each other — for the mutual benefit of businesses and the employees that work there," he said in a statement.
While the agreement enshrines the rules of engagement, a likely tough battle looms following Telstra's recent decision to set pay increases for staff on Australian Workplace Agreements of just 2 per cent for the next year. The CEPU has said it would push for a pay rise this year of around 7 per cent.
However, Telstra's agreement should mean staff will have an easier time joining a union to bargain on their behalf. A key principle agreed upon was that union membership was a matter of employee choice. Telstra also recognised that employees can rightfully be supported by their union during workplace issues. Senior representatives from each party will meet annually to discuss the principles.
The agreement comes as the Federal Government ushers in its new Fair Work Act, which from today compels parties to bargain in good faith and gives back the unions a spot at the negotiating table. Telstra was unable to answer ZDNet.com.au's questions at the time of writing.