A step toward performance-based pay in Telstra

January 22, 1997
Issue 

A step toward performance-based pay in Telstra

By Leo Wellin

Telstra members of the Community and Public Sector Union late last year overwhelmingly endorsed a competency-based pay structure that demands "increased productivity and increased revenues" over the next two years.

The agreement affects more than 3000 customer service representatives (CSRs) working in the call answering, sales and service order processing areas of Telstra and ties individual performance to training and pay increases. The new pay structure will be based on quantitative measures in sales, talk-time and teamwork — areas which are currently part of monthly performance appraisals by "team leaders."

Before the vote there were joint presentations from Telstra management and CPSU executive, breaking work sites into smaller groups and focusing the discussion on the new pay structure. In most cases, CSRs will receive an immediate salary increase of around $500. What wasn't stressed is that further salary increases are no longer guaranteed, but are instead subject to annual performance development reviews by management.

Opposition to the pay and training structure was localised and muted, with some workplace delegates coming under severe pressure from the branch office to support the agreement. The voting figures revealed opposition coming from Perth, Sydney and Brisbane call centres, where there have been significant staff shortages — something not favourably resolved by CSRs being pressured to work harder. Overall voting figures were 198 members against and 2222 members for the competency pay and training agreement.

Most workplace delegates were ill informed about the scope of the agreement, and failed to take account of the fact that as CSRs they too will be subject to the new performance-based pay structure. Training courses, workplace grievances and running workplace meetings are normally dealt with during business hours. These activities — representing members' interests — are of course unlikely to produce the CPSU telecommunications executive's shared vision of a more profitable Telstra for the next two years.

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