1700 Jobs, 17 Centres To Be Axed
Newcastle Herald
Thursday June 7, 2007
TELSTRA'S call-centre consolidation plan will cost 1700 jobs in rural Australia, far more than the 500 highlighted yesterday.
Telstra spokesmen confirmed that 1700 call-centre jobs around the country would be abolished and 17 call centres closed.Telstra would then reopen a new centre in each of four cities Sydney, Melbourne, Townsville and Perth and recruit 1200 people to work in them.While existing Telstra workers would be "looked on favourably" because of their experience, the company would also search externally. Telstra regional manager Chris Cusack said 469 jobs would be lost in NSW alone, including 219 in Newcastle.The Telstra plan has been condemned by unions, and the Tasmanian Government has led the call for federal intervention, saying the loss of more than 250 jobs in Launceston was a big blow.Newcastle Trades Hall Council secretary Gary Kennedy said the plan was possibly the first step along the road to sending Telstra call-centre jobs overseas.Mr Cusack said he knew of no plans in this direction, but people needed to remember that Telstra was competing against lower-cost centres in Mumbai and elsewhere. He said there would still be 350 Telstra jobs in Newcastle once the call centre closed and he promised that customers would receive better service.He said Telstra would save $6.6 million in real estate costs by closing the affected regional centres. Mr Kennedy said many of the 219 Newcastle call-centre workers had moved to Newcastle from elsewhere in Telstra to take up job offers when the call centre was established. Federal Treasurer Peter Costello said the closures would create hardship and it was up to Telstra to explain them."I don't like it and I don't welcome it," Mr Costello said yesterday. "I think that those people that are affected . . . it will be very, very difficult and damaging for them."But I can't explain to you Telstra's thinking. Telstra has to defend itself." with AAPEditorial, Page 8
© 2007 Newcastle Herald