Telco workers union CEPU slams TPG Telecom's proposed pay increase

The Communications, Electrical and Plumbing Union (CEPU) has called TPG Telecom’s proposal to increase its workers’ pay by 3 percent a pay cut in real terms, and has also criticised the telco for proposing to remove penalty rates and casual loading for some of its retail workers

In a bulletin on its site, the CEPU revealed TPG proposed to increase wages of its retail, call centre and logistics employees by 2 percent in the latest round of negotiations for a new enterprise agreement, before increasing it to 3 percent.

The union said the proposal was still a pay cut in real terms after the increase, saying TPG’s frontline retail, call centre and logistics workers, along with their families are set to face “significant” financial pain.

It also revealed TPG also proposed that its permanent retail employees who work up to 12 hours after 6pm (or 20 hours on Saturdays), within a 2-week roster cycle would no longer not receive penalty rates for those hours. Casual workers meanwhile would still be paid penalty rates, but would instead lose their 25 percent casual loading.

“TPG’s revised proposal to guarantee a wage increase of just 3 percent across all workers covered by the EA – with up to 1 percent more payable at your manager’s discretion based on your performance – has left a sour taste in workers’ mouths,” the bulletin read.

The union cited the current inflation rate of 6.1 percent, and that it is expected to increase further and create deficits for household budgets. “As inflation continues to rise, the shortfall in your pay packet gets bigger while you are waiting until March 2023 to see a single cent of it,” the bulletin read.

“No amount of window dressing will soften the blow to TPG workers and their families under this real terms pay cut proposal,” the CEPU said.

“Whichever way you look at it, if TPG gets their way, workers and their families are in for real financial pain as the cost-of-living soars, whilst pay races downhill.

The union said it has made it clear to TPG management that the offer “doesn’t cut the mustard” as it pushes to formally offer the proposed agreement later this month.

“TPG workers are worth more, and their families deserve better. Together, we can deliver the pay and conditions that TPG workers and their families deserve,” the bulletin read.

“We are committed to continue bargaining with management in good faith to secure the very best possible outcome, and we need to be able to get you the most up to date and urgent information as quickly as possible, as this matter progresses.”

Last month, TPG revealed its revenue for its half year ended 30 June 2022 posted steady growth as international travel and other COVID-19 restrictions eased during the period, after an increase in mobile and fixed wireless subscriber numbers.

In March, the CEPU slammed NBN Co's plan to upgrade customers on fibre-to-the-node (FTTN) to full fibre, calling it “another election promise that will go unmet,” in reference to the previous Liberal government.

Updated 6:30pm 8 September 2022: TPG Telecom provided the following statement:

"TPG Telecom remains committed to improving the terms and conditions for our frontline teams," a TPG spokesperson told CRN.

"We have been in extensive bargaining and consultation with our people and bargaining representatives since late last year and continue to negotiate in good faith. These negotiations have involved the complex task of streamlining multiple industrial instruments into a proposed single EA, in the interests of our people and in line with our core value of “Simple's better”.

"TPG Telecom’s wage proposal for year one of the agreement is a guaranteed average of 4.5 percent (1.50 percent average increase on approval; 3 percent guaranteed increase at March 2023), plus a discretionary pool of further increases. The proposal also builds in a guaranteed 0.5 percent uplift on minimum super contributions."