Why has there been such a long delay with approval of your agreement?
The delay has occurred because the Fair Work Commission found that the draft agreement may not meet the Better Off Overall Test (BOOT) under the Fair Work Act. This included concerns that the minimum rates of pay in the agreement were set too low compared to the Telstra Award.
This was a concern raised with Telstra during negotiations by CPSU. As a result of the FWC concerns the employer has been required to make a series of undertakings which should be read in conjunction with the Telstra EA.
When will the new Telstra EA come into effect?
The Telstra EA will come into effect 7 days after its approval by the FWC which is Friday 19 June 2020.
A reminder about the key outcomes
It’s been so long since the Telstra EA was endorsed by a majority of employees that it’s understandable if you’ve forgotten about the key outcomes! These include:
- Parental leave eligibility of 16 weeks has been extended to either parent, subject to them having 12 months or more continuous service.
- Commitments to protect all employee’s accrued entitlements including redundancy entitlements in the event they are transferred to a Telstra subsidiary and a guarantee that Telstra will pay those entitlements should the subsidiary become insolvent or you are made redundant in the future by the subsidiary.
- Protection to ensure that if your Long Service Leave (LSL) application has been twice refused in a calendar year you cannot be forced to take LSL at the employer’s direction.
Pay outcome while still disappointing was improved by staff rejecting first Telstra offer
The pay pool offer for staff was improved as a result of the rejection of Telstra’s first offer but is still ultimately disappointing.
The pay outcome is complex but since the nominal expiration of the current EA (30/9/2018) there have been two pay pool increases. 1.5% with effect 1/10/2018 (not referenced in the agreement) and 1.5% on 1/10/2019 (referenced in the EA).
There is a further 0.3% to be backpaid to 1/10/2019 and a further 2% payable on 1/10/2020.
Essentially the offer equates to a pay outcome of 5.3% over three years from the nominal expiry date of the current EA. This represents an improvement from Telstra’s first offer of 4.5%.
This improvement was only possible because of the action of union members in voting No to the first offer.
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