If you glanced over the email being sent to staff about superannuation changes at Telstra, you might think that Human Resources is doing you a favour!
Legislative changes to superannuation mean super must now be paid on short
term incentives (STI), sales commissions and job points payments. The changes
occur under new legislation making sure employers pay super on all parts of
salary. Unions raised the unfairness of superannuation for AWA staff in
discussions with Telstra for a new enterprise agreement. Telstra hasn’t been
paying super on performance pay - which can be 20% or more of salary.
So, the changes should be a positive. But some staff have been advised their
take home pay could fall. How can this happen? Because Telstra’s AWAs have a
total remuneration amount rather than, as some companies do, listing base salary
+ allowances + superannuation. Telstra says “If the superannuation component of
your total package increases or decreases, then your pay components will be
adjusted within your Total Remuneration package.
Before super changes
After super changes
Total remuneration
$48,000
$48,000
Base salary
$40,000
$40,000
Performance related payments
$8,000
$8,000
Less super contributions
$40,000 x 9% = $3600
$48,000 x 9% = $4320
Base take home pay including performance pay (pre-tax)
$44,400
$43,680
The difference
$720 a year or $3600 over 5 years
What you say
Members have started contacting us about the validity of this decision.
One said: Employers are now required to pay super on commission.
Sounds good doesn’t it. However, Telstra have advised that they will be
deducting the extra super that they are now required to pay, from our
commission. ie if we earn $1000 per month in commission, they will now pay us
$910 and put the $90 into our super. Can they do this? It doesn’t sound right to
me.
Another wrote: My reading of this is that the government is raising
the employers’ super contribution requirements and Telstra rather than finding
the measly $171 extra they have to pay on my behalf according to payroll are
reducing my take home pay by that amount to pretend they are complying with
super legislation. This action is not in the spirit of super legislation. Of
greater concern is that apparently Telstra can reduce my take home pay anytime
they like without my consent
What can I do?
If you need help working out if you have been affected, contact your union
delegate or email us on Telstra@actu.asn.au
EA update: Telstra HR refuses to go back to the table
Two weeks ago, Telstra human resources unilaterally broke off negotiations
with unions and the ACTU about your new enterprise agreement (EA). We have
written to Sol Trujillo reiterating that, at any stage and with no
preconditions, we are willing to re-enter EA negotiations. We offered Human
Resources two meeting dates, which they declined.
Unions remain keen to get back to the table, so we can take up issues that
are important to you like superannuation, a fair pay increase, salary
sacrificing for all employees, and the retention of current redundancy
entitlements. We’re also putting the case for you to get more control over your
work at Telstra. Although Telstra HR has called off talks, we remain as always
ready and willing to represent you in negotiations
