Pay rise if Telstra workers leave union

TELSTRA employees will be promised pay rises of up to 22 per cent if they sign non-union deals, but will have their wages frozen for 12 months if they refuse.

Documents show Telstra's plan to bypass unions and roll-out non-union deals across its workforce has been in operation since February, with the telco planning to use non-union employees and outside contractors in the event of industrial action.

Workers signing non-union deals would be guaranteed a 10 per cent pay rise over three years, with scope for further increases totalling 12 per cent.

Employees who did not sign would receive annual increases of "no more" than 3 per cent. While the non-union deal would apply from October this year, workers rejecting the deal would not receive their first increase until October next year.

Unions have seized on the documents to back the assertion that Telstra has a secret agenda to use Work Choices to sideline unions and cut the pay and conditions of workers.

ACTU secretary Jeff Lawrence urged the Rudd Government to scrap the rest of Work Choices in order to force Telstra back into talks with the unions. "It is appalling that one of Australia's largest and most profitable companies can engage in this sort of dishonest and unethical business behaviour under our current IR laws," he said.

"Australian workers urgently need the rest of Work Choices to be scrapped and to have their rights to collectively bargain restored."

Deputy Prime Minister Julia Gillard urged Telstra to engage in "co-operative workplace relations", saying Work Choices "is a thing of Australia's past, not its future".

"We want to see people's rights in the workplace respected, and that includes, of course, if they have chosen to join a union, having the union able to represent them," she told ABC radio. Asked if the Workplace Ombudsman should intervene in the dispute, Ms Gillard said the ombudsman would respond to any complaint, and help any worker who felt they needed assistance.

Telstra spokesman Martin Barr described the documents as "early internal draft documents" that did not represent Telstra policy.

However, he also said the proposals were similar to those put to unions before negotiations broke down.

He confirmed Telstra, which this week reported a 13.5 per cent rise in annual profit to $3.7 billion, had contingency plans in the event of strike action. "It is the same model we put on the table with unions during negotiations, which aims to secure significant incentive-based productivity gains over time while offering guaranteed pay increases to our employees and preserving their terms and conditions," Mr Barr said.

"Of course, we looked at the company's options if union negotiations broke down - and they did. Of course we have contingencies for industrial action because we need to maintain essential telecommunications services to Australia."

Mr Lawrence said the telco's strategy was particularly outrageous given the significant pay rises awarded to Sol Trujillo, whose remuneration rose $1.6 million to $13.3 million last year, and to other executives.