Telstra offshoring Australian work to the Phillipines

27 June 2008

Dear Mr Trujillo

Thank you for your response via Mr Fewster to our correspondence of 10 June on the above issue. CPSU however believes that many of the questions we raised have not been answered. Indeed our concerns about this issue have only been heightened by Telstra’s response and subsequent correspondence from Mr Rolland about the anticipated increase in calls in Telstra Call centres as a result of the many problems associated with the introduction of the Sebel computer system (as part of Telstra’s IT “transformation”).Telstra’s proposal to utilise labour hire firms to assist with this increased workload suggest to us that further offshoring of Australian work is possible.

CPSU seeks a meeting with senior Telstra managers to discuss the following:

• The number of offshore positions currently utilised to perform Telstra work
  
• Their location and functionality
  
• The length of time Telstra sees these positions being retained offshore
  
• Any future offshoring proposals
  
• The impact upon Telstra staff of these actions and proposals (including the impact of transferring Telstra managers offshore for varying periods of time)
  
• How Telstra’s actions are consistent with the Australian Government’s agenda of retaining skilled work and employment in Australia
  
• The many problems and delays associated with the introduction of the new IT systems in Telstra and its impact upon staff
  
• Whether Telstra is prepared to disclose to its clients that their personal information and financial details will be given to other firms operating offshore
  
• How the decision to offshore customer facing work is consistent with the statement quoted in The Australian newspaper of 30 August 2007 from Telstra spokesperson Ms McKinnon that “Telstra can guarantee that any customer calling into a Telstra call centre will be talking to a staff member located in Australia,”

CPSU does not accept that there is no requirement for Telstra to consult with Telstra staff and their union over these matters. This requirement is clearly outlined in clause 27.4 of the Telstrta Enterprise Agreement 2005-2008 which states:

“Where Telstra proposes to introduce significant business initiatives or major changes which have demonstrable impact upon employees (including Telstra policy which affects employment conditions), managers will consult with the employees who may be affected by the proposed changes and their union as early as practicable. A demonstrable impact on employees will arise in circumstances such as major changes in technology, outsourcing, or the composition, operation or size of Telstra’s workforce or in the skills required, the elimination or dimunition of job opportunities.”

Accordingly I request that you contact me to organise a meeting to consult over these matters of vital interest and importance to CPSU members and your employees.

Yours sincerely

Louise Persse
CPSU National President

10 June 2008

Dear Mr Trujillo

The CPSU is concerned to learn that Telstra Corporation has once again decided to offshore Australian work, in this instance to The Phillipines. We understand that this work is inbound call centre work from the Credit Management section of the company and is being performed by US labour hire firm Teletech. We note that this is the same company used for offshoring of work from the Bigpond centre at Ballarat in mid 2007.

In light of this development, the CPSU would like answers to the following questions:

• How many positions have been created in The Phillipines to do this work?
• What is the final number of positions that are to be created?
• For how long are these positions to be retained?
• What is the impact of this work being offshored upon Credit management call centre workers in Brisbane, Melbourne, Geelong and Perth?
• Is it true that several Telstra team leaders and a Centre Manager have been sent to the Phillipines to train the Filipino workers?
• Is the creation of these positions linked to the delay in the implementation of the IT transformation process and in particular the problems associated with the introduction of the Siebel computer system?
• Will Telstra be informing its customers that their personal information and financial details will be going offshore?
• How is this decision consistent with the statement quoted in The Australian newspaper of 30 August 2007 from Telstra spokesperson Ms McKinnon that “Telstra can guarantee that any customer calling into a Telstra call centre will be talking to a staff member located in Australia,”
• Why have Telstra failed to consult with effected employees and their unions in line with clause 27 of the Telstra Enterprise Agreement 2005-2008? CPSU would appreciate a written response to this letter by close of business 13 June, so that we can advise our members, who are very concerned about the implications of this decision.

Yours sincerely

Louise Persse
CPSU National President