Samantha Maiden | August 11, 2008
TELSTRA has hit back at Rudd government claims it is trying to squeeze the last drop from the "bitter lemon" of Work Choices by bypassing the unions in pay negotiations.
Workplace Relations Minister Julia Gillard yesterday reminded the telecommunications giant that unions have a right to represent workers. This followed confirmation Telstra will bypass the unions when its Work Choices individual contracts are scrapped under Labor reforms, and deal directly with employees."I don't think it's in Telstra's interest to be seen to be the company that's still trying to implement Work Choices," Ms Gillard told ABC television. "In a democracy, people who want to be a member of a union then the union has got the right to represent them, and companies right across the country should recognise that."
But Telstra's head of public affairs Phil Burgess said yesterday the telco giant had done nothing wrong. "We simply want everyone who wants an opportunity to be on a performance-based contract to have that opportunity," he said.
"There's no need to have someone between us and the employee. So this is not about AWAs or unions. It's really about how a modern company relates to their employees. And if people want to work harder, they can make more money.
"If someone is trying to squeeze the bitter lemon (of Work Choices) it's not us."
About 21,000 workers are employed on individual contracts known as Australian Workplace Agreements that will stay in place up to 2012, well into any second term of a Labor government. Telstra is now considering allowing these workers to stay on AWAs indefinitely, employing them on expired contracts that provide for an annual pay rise.
Ms Gillard said the Government's new laws would be clear and transparent. "It will certainly say to Telstra and to other companies that if a majority of the employees want to try collectively bargaining, then the employer has to join them at the bargaining table and have a go at it in good faith," she said.
Opposition industrial relations spokesman Julie Bishop accused Ms Gillard of continuing to scaremonger about Work Choices, when those laws would operate longer under Labor than under the Howard government.
"It is also unacceptable for Julia Gillard to threaten Telstra and demand that the company give in to demands from the union bosses, including attempts to negotiate illegal side agreements," Ms Bishop said.