TELSTRA PERFORMANCE RATINGS

Coinciding with the large number of redundancies, Telstra is releasing performance ratings. We have had an unusually high number of complaints. Given the rather vague and non-transparent way that it operates, many do not understand the outcome. For Job Family staff, this is critical as your pay depends on your rating.
I am brave enough to try to explain the rules. The explanation is complex, and I hope that I have succinctly (and accurately) explained the process.
If you are meeting expectations (ME or rating 3) you are doing your job and should get the full pay rise. Our Branch does not support the Telstra approach. You may have concerns also!

THE MATRIX

This is this the 2024 matrix. We add the 2023 matrix for information.

JOB FAMILY AND PAY RISES

One thing that is transparent is the "bell curve" nature of the process.

Let us look at the "bucket".
1. There is a fixed bucket of money.
2. The bucket of money is increased only by the same increase in the EBA each year.
3. This October the EBA provides for a pay rise of 4%.
4. The bucket of money will be increased by 4% this year.
5. It was 3% in 2023 and will be less in the next 2 years
6. The bucket of money will reduce this year as redundant staff costs are removed from the bucket.

Let us look at your pay.
7. Even if your rating is 3, this does not guarantee that you will get the 4% pay rise
8. The matrix sets out your pay increase, and it is dependent on the "market rate" salary for your job.
9. So at rating 3, there are 5 possible pay rises, each aligns with the "market rate."
10. This year, even if you get a rating of 3, you may still get only 3%, not 4%
11. Even at a rating of 4 or 5, you may still not get 4%.
12. Of course, you could get more than 4%.
13. And some ratings result in a 0% change.
14. There is no catch up mechanism if you get less than 4%. It is a lifetime reduction.

Let us look at the "bucket" effect.
15. Do not forget the "bucket" it is a fixed sum.
16. In theory, one outcome is that everyone would get 4% - and the bucket will then be empty.
17. But it you pay someone a pay rise of 6% instead of 4%, then someone has to be paid only 2%.
18. This renders performance assessments a waste of time. A formula must be applied.
19. Effectively, if you rate everyone at 3, then everyone will get 4% this year.
20. But if you rate someone at 4, then someone else must be rated down.
21. You are not allowed to have everyone above 3 even if you had a really high performing team.

TELSTRA AND MARKET RATES

The pay matrix has one axis for each performance level rating 1 to 5 with matching pay rises.
But there are 5 columns for each rating. These coincide with "market rate" levels.
Telstra conduct a survey of salaries across Australia to determine what the market rate is for your skills.
The results are secret. They are provided by an outside consultant.

An example:
So if you are (say) an electrician, the survey is supposed to tell us the "market rate" for an electrician's salary (a statistical average).

Back to the matrix.
If your pay is market rate, then you are paid the middle column. This year, at rating 3, it will be 4%
If your salary is between 106% and 116% more than the market rate, they you will only get a 3% rise.
If your salary is more than 116% of the market rate, they you will only get a 3% rise.
If your salary is between 86% and 96% less than the market rate, they you will get a 4.6% rise.
If your salary is less than 86% of the market rate, they you will get a 5.5% rise.
We do not know the categories or their position in the market it is secret.

The effect
The effect of this is to reduce (over time) the so called "Telstra industry leading employment conditions" to the market rate - if you are above market.
It will also increase (over time) salaries up to the market rates if you are below the market
Obviously, Telstra only want to pay market rates>

TZV EBA

We confirm that some technical wording changes are being carried out. TZV did circulate a position paper this week. WE include an extract:

The Draft Ops EA Agreement is moving closer to approval by government. It means we are also closer to a vote and, if supported by a majority of employees, delivering on its significant benefits.
The one-off payment of $5553 (this has been slightly increased following more detailed costing by government) and a 3% pay increase (backdated to 3 April) will be paid as soon as practicable following final approval of the agreement by the Fair Work Commission.
While the approval process continues, planning is well underway to kick off a series of EA Roadshows at each SECC in the coming weeks.

NBN

We met with members on Zoom this week re the issues of call-outs, and start of day and end of day overtime. We are seeking responses and intend to proceed with a claim against nbn.

OPTUS

This week we commenced proceedings against Optus claiming underpayments to staff at Belrose. It arises from shift handover, overtime and shift penalties. We will advise of progress.