Telstra call centre jobs to be axed in overseas deal

Ben Schneiders - 4 October, 2008
http://www.theage.com.au/national/telstra-call-centre-jobs-to-be-axed-in-overseas-deal-20081003-4tkn.html?page=-1

HUNDREDS of Telstra call centre jobs are set to move offshore, possibly to the Philippines, after the company awarded a big contract to a US outsourcing firm. 

Sources confirmed that the contract meant a significant number of jobs would be shifted overseas. "It won't be small," one source said.

Unions attacked the move, suggesting the job cuts could run into the thousands.

The workers are not directly employed by Telstra but perform call centre work for the company through contractors.

A Telstra spokesman confirmed it had awarded a contract to US multinational TeleTech for sales support positions as it reduced the number of contractors it used.

The affected workers deal with Telstra customers in areas such as connecting pre-paid phones, change of address, mobile phone activation or deliveries and some bill inquiries.

Questions about job losses were referred to TeleTech, which did not respond to a request for comment about its plans other than saying that it would "maintain and enhance" the experience of customers.

Community and Public Sector Union national president Louise Persse said: "No one would seriously believe that sending service jobs offshore will improve standards for Australian customers.

"Clearly Telstra is trying to cover this up by sending service jobs offshore through the back door. But the onus must be on Telstra to come clean with customers and the Australian public, and to keep all service jobs in Australia."

Unions had feared the move was imminent after jobs were shifted through TeleTech to the Philippines in recent years and there were reports from Telstra staff of a number of senior managers at the company visiting the Philippines recently.

The Age can also reveal the existence of a call centre outsourcing unit within Telstra, based in Melbourne, which has at least five staff.

The move to send the jobs overseas comes just weeks after Telstra axed 800 jobs as part of a restructuring.

Those job losses were part of a five-year program to reduce staff numbers by up to 12,000. About 9500 of those jobs have been cut already.

Telstra's industrial relations stance has angered Deputy Prime Minister Julia Gillard after the company moved to exclude unions from negotiations in July.

Staff in two divisions voted last month to reject a non-union pay offer from the company in a blow to Telstra's workplace strategy and there are now union moves to call a ballot for protected industrial action.

The cuts at Telstra are the latest in a wave of big job losses. In recent months Starbucks, Fairfax Media, Ford, Holden, South Pacific Tyres and Qantas have announced hundreds of job cuts.

Background

Telstra offshoring Australian work to the Phillipines: CPSU update July 2008