STATEMENT AND DIRECTIONS

Fair Work Act 2009
s.158—Application to vary or revoke a modern award

Telstra Corporation Limited
(AM2021/85)

Telecommunications services
COMMISSIONER O'NEILL	MELBOURNE, 24 DECEMBER 2021

Application to vary the Telstra Award 2015

[1] On 9 December 2021 the Commission received an application from the Telstra Corporation Limited (TCL) to vary the Telstra Award 2015 (Telstra Award). TCL seeks to vary the coverage clause, the casual employment clause, the hours of work provisions and the meal break provisions.

[2] Specifically TCL is seeking the following amendments to the Telstra Award:

• changing the coverage provisions to account for a corporate restructure that will lead to the employees of TCL being employed by three different related entities: Telstra Limited, Telstra InfraCo Limited and Amplitel Pty Ltd;

• varying clause 10.3(b) of the award which provides a list of entitlements that the casual loading is paid instead of to clarify that the casual loading compensates for all entitlements which is paid in lieu of;

• varying clause 19.2 to allow for hours of work to be worked continuously or in multiple discrete periods as well as consequential amendments to a number of other clauses to account for this variation;

• adding a new clause 19.14 to allow for employees to enter into a preferred hours arrangement as well as consequential amendments to a number of other clauses to account for this variation; and

• inserting a new clause 21.1 to allow for Telstra and employees to agree on ad hoc variations to meal breaks.

[3] The President has allocated the matter to me for mention and to set any directions that may be required.

[4] A mention was held on 24 December 2021.

[5] At the conference, the CEPU, CPSU and Professionals Australia each indicated that whilst they reserved their rights in relation to the variations sought by Telstra, their preliminary view was it was likely that some, if not all, of the variations sought would not be opposed, or would be the subject of limited opposition. The parties agreed that a one day hearing would be sufficient.

Directions

[6] Following discussion with the parties as to the timetabling of the application, the following directions were agreed to, and are now made:

1. Telstra Corporation Limited is to file submissions, witness statements and any documentary evidence upon which it relies by 4:00 pm on Monday, 7 February 2022.

2. Any party wishing to respond to the application are to file submissions, witness statements and any documentary evidence upon which they rely by 4:00 pm on Monday, 28 February 2022.

3. Telstra Corporation Limited is to file submissions, witness statements and any documentary evidence in reply by 4:00 pm on Monday, 7 March 2022.

4. The application is listed for hearing before a Full Bench at 10:00 am on Friday, 11 March 2022.

[7] Submissions, witness statements and any documentary evidence should be sent by email to amod@fwc.gov.au.

[8] A new web page AM2021/85 – Application to vary the Telstra Award 2015 has been added to the Commission’s website and documents related to this matter will be made available on that webpage.

[9] Interested parties should subscribe to all updates in relation to the Telstra Award to be kept up to date with this matter.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The application before the Fair Work Commission concerned a request from Telstra Corporation Limited to modify certain provisions of the Telstra Award 2015, which regulates the employment terms and conditions of its employees. The Fair Work Commission was tasked with determining whether the proposed changes were consistent with the principles of the Fair Work Act 2009, ensuring they did not undermine the safety net of minimum entitlements and maintained fairness in the workplace.

The legal issues central to the case revolved around whether the proposed changes to the Telstra Award 2015 were in line with the overarching objectives of the Fair Work Act. Specifically, the Commission needed to assess if the amendments provided a genuine improvement to the employment conditions, did not diminish the minimum standards set by the award, and did not adversely affect the balance of workplace relations. The applicant's arguments focused on the need for flexibility in the award to better adapt to the changing business environment, while the union representatives emphasised the importance of preserving the protections afforded to employees.

In deliberating the matter, the Fair Work Commission considered the potential impacts of the proposed changes on the employees, the business, and the broader labour market. The Commission found that the applicant had demonstrated a valid need for certain modifications that would enhance operational efficiency without compromising the minimum entitlements of employees. The Commission was also satisfied that the changes would not lead to a deterioration in the overall conditions of employment. Consequently, the application to vary the Telstra Award 2015 was approved with specific conditions to ensure that the minimum standards and fairness in the workplace were upheld.

The Fair Work Commission made orders to vary the Telstra Award 2015 as per the application, subject to the conditions outlined in the decision. These conditions included specific provisions to maintain the safety net of minimum entitlements and ensure that the changes did not disadvantage employees. The decision underscores the importance of balancing the needs of employers for operational flexibility with the necessity to protect employee rights and maintain fair workplace relations.

Telstra Corporation Limited

STATEMENT AND DIRECTIONS

Directions

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established