Telstra ends industrial standoff

Wan July 2, 2009, 1:55 pm

Telstra's pariah status among unionists appears over after the company marked day one of the new industrial relations regime by committing itself to bargaining with unions.

After shunning unions under former chief executive Sol Trujillo, the employer of more than 30,000 workers yesterday made a joint statement with the ACTU agreeing to bargain in good faith under the new Fair Work laws.

Telstra and three unions will begin negotiating a new enterprise agreement covering about one-third of the company's workforce.

Company executive Andrea Grant said in an email to staff that management wanted to negotiate a deal which had a strong pay-for-performance commitment.

"This agreement is a positive step and reinforces our commitment to negotiate a new enterprise agreement - one which is fair and rewards excellent performance, and enables us to meet our customers' expectations and remain competitive in the marketplace," Ms Grant said

ACTU secretary Jeff Lawrence said the joint statement would go a long way towards ending the hostile atmosphere between Telstra and its workforce created by the company's previous management and chairman.

"Telstra's sensible decision to restore a working relationship with unions sends a strong signal to all employers across the Australian economy that they should respect their workers," Mr Lawrence said.

Kevin Rudd and Ministers yesterday played down fears of a wages breakout under the laws, but urged unions not to try taking advantage of the new industrial landscape.

"It is important for unions and for business at this stage to exercise restraint," the Prime Minister said.

Treasurer Wayne Swan said unions should not be making extraordinary demands as many employers had been keeping on despite experiencing difficult circumstances.

"People will make their ambit claims. It doesn't mean that they are going to get it," Mr Swan told Fairfax Radio Network.

The Australian Chamber of Commerce and Industry said retaining jobs was the priority, not supporting wage increases that were unsustainable and would lead to job losses.

"Unfortunately, employers are now required to sit down at the bargaining table despite unions making irresponsible wage claims as a result of the new good faith bargaining framework and majority support provisions," ACCI acting chief executive Greg Evans said.

ENDS

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