Home Telecoms & NBN Telstra cuts show public services must stay public: Greens
Telstra cuts show public services must stay public: Greens Featured

Telstra's announcement that its plan to cut 8000 jobs by 2022 will improve customer service has been labelled as "nonsense" by the Australian Greens.

The telco announced a new strategy, Telstra2022, on Wednesday morning, the key feature of which was that it would effect a net reduction of 8000 employees and contractors by 2022 and reduce two to four layers of management, leading to the cutting of one in four executive and middle management roles.

Greens telecommunications spokesperson Senator Jordon Steele-John blamed the company's position on its privatisation.

“This is what happens when a company’s priorities shift from service and service delivery, to profits at any cost,” hen said.

“This is an utterly disingenuous announcement from Mr Penn; you can’t cut 8000 jobs and simultaneously expect the Australian people to believe you will improve customer service."

“Just this week Telstra customers have seen significant service outages across the country and not for the first time this year either. Trust in the telco has hit rock bottom."

Telstra's privatisation began during the first term of the Coalition Government under John Howard in November 1997, when one-third of the company was floated on the stock exchange.

In March 1998, the government announced plans to sell off the remaining two-thirds in a year, but the bill failed to clear the Senate. In mid-1999 a second tranche, T2, was sold. In September 2005 the bill to sell the remainder of Telstra went through Parliament and T3 was launched in October 2006.

“Time and again the Coalition talk about privatising public assets and giving tax cuts to big companies and time and again the companies themselves turn out to be the only winners," said Senator Steele-John.

“Privatisation means workers' jobs will be the first thing to go when profits are threatened, and that is exactly what we’ve seen today from Telstra!

“If you think NBN customer service is bad now, just wait until the government sends it down the same path of privatisation as Telstra.

"The Australian Greens will continue to fight to stop the same thing happening to the NBN; essential public services must stay in public hands for the public good.”

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Sam Varghese has been writing for iTWire since 2006, a year after the sitecame into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

 

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