Telstra has set that it will cut more than 110 jobs after extending their contract for outsourcing their IT equipment to IBM for another seven years. The two-thirds remaining were only guaranteed jobs for the next 6 months. This comes when last year, Telstra’s CEO Sol Trujillo vowed to cut as 12,000 jobs in Telstra.The deal with IBM are part of a cost-cutting plan to save up to $200 million for operating costs. Telstra has said that the contract will save Telstra $500 million during the 7 years.
It was also announced that Telstra is being investigated by the Workplace Ombudsman for allegations that Telstra are making people sign new workplace agreements, though the new Labor government has said that it will scrap them, but all current ones will still be in effect until the contract expires.
“Following consistent public allegations that Telstra has applied undue pressure to existing employees to sign AWAs, the Workplace Ombudsman advised Telstra that it is conducting an investigation into the substance of these claims and to determine if any breaches of workplace law have occurred,” Michael Campbell, executive director of external affairs for the Ombudsman, said.
And finally, Telstra has plans to appeal a recent court decision that it was misleading customers over advertisements over it’s Next G Network. The court had found that “coverage everywhere you need it” was misleading or deceptive.
The court also found that Telstra’s claim of the same or better speeds by upgrading from their CDMA service was misleading.