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Labor senator slams Telstra job cuts

Economy a reason not to cut jobs, says Senator Cameron

A Labor senator has slammed Telstra's reported plan to slash 6000 jobs, saying the telco giant and other big companies owe it to the government to keep people in work.

Telstra will reduce staff numbers by about 15 per cent over three years to lift its earnings performance, The Australian Financial Review said on Thursday.

Thousands more positions will be removed by natural attrition.

Senator Doug Cameron, a former trade union official, is not impressed with the plan.

"I don't think companies, given the state of the economy, should be looking at downsizing or cutting jobs," he told reporters in Canberra.

Labor's management of the economy during the global financial crisis had kept people in jobs.

"There should be reciprocal obligations from companies in this country to try to keep workers in as long as possible."

Nationals frontbencher Barnaby Joyce is concerned the job cuts will come from the bush.

"With the loss of more staff (we'll) lose the capacity to deliver services," he told reporters.

He said the telco was already operating with "skeleton" staff in some areas.

The cuts could have serious implications for the rollout of the National Broadband Network because 25,000 technicians would be needed, Senator Joyce said.

"At best I'd say there are 8000 to 6000 ... in Australia, and at this point in time Telstra are actually putting them off.

"So who is going to build this? Where do these people live?"

Nationals senator John Williams agreed the cuts would lead to a further loss of services in the bush.

"You cannot provide services without manpower," he told reporters.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Australian Financial Review, Australian Financial Review, etwork, Telstra

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