The Community and Public Sector Union (CPSU) has condemned Telstra's latest plans to cut 10,000 contractor jobs in two years.
"Our members who will lose their jobs take little comfort in knowing that Telstra is attempting to shore up its share price," CPSU deputy national president Brooke Muscat said. Thousands of people and their families have lost what little job security they had as contractors, all around Australia, because of this announcement.
"It will be particularly hard for our members in regional areas, where good, secure jobs are increasingly hard to find," Muscat added.
Muscat went further and said the giant telco failed to provide value to shareholders and is "failing workers as well".
The news came during an investor call this week when CEO Andrew Penn said the company had reduced its indirect workforce by 5,000 and that it planned to reduce it further by 25 per cent.
He did not specify the number of jobs, but a Telstra spokesman referred Reuters to Penn's comments earlier in 2019 when he said Telstra had 40,000 "industry partners who provide technology, consultancy and other services".
“These cuts show a lack of strategic focus from what should be Australia’s leading telecommunications company," Muscat said.
“Wages are flat lining and our economy is showing the effects. We need governments and employers that are prepared to acknowledge reality and start investing in good services and good jobs. Instead, we see record low wage growth and more cuts that will simply hurt working people and their families.”
On 29 May, Telstra announced it was able to accelerate its planned job cuts to reach 6,000 by the end of the current financial year. This resulted in an extra $200 million restructure costs being added to its final FY19 bill, with the publicly-listed telco now set to spend $800 million by the end of the financial year.