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2014-08-11

Pay for performance

Performance pay: unions meet with Telstra on pay matrix

The Telstra unions have met with Telstra on two recent occasions to discuss the pay matrix for those on the Job Family pay system.

The majority of CWU members are employed under the Workstream model which provides union-negotiated wage levels and pay rises with a small “performance” wage component on top of that.

The CWU does, however, have members on the Job Family model where an individual’s pay level and annual increase (if any) is largely at management’s discretion. So while the union opposes this pay system, we regard it as important to try to make it as fair as possible.

In the recent discussions the CWU and CPSU both raised questions about aspects of Telstra’s proposed pay “matrix” for the coming round of assessments.

Both unions of course criticised that aspect of the matrix that allows for some employees to get no pay rise at all over a year. In a world where some level of inflation is the norm, this in effect means that such employees are getting a pay cut even though they are doing their jobs.

This is unjust. But it is particularly irrational at the top end of any job salary range where, under some versions of the matrix, an employee can in fact meet expectations and get no pay rise i.e. get a real wage cut.

In response to this objection, Telstra has adjusted its matrix at this upper end (REM greater than 115% of range). It has also increased the rises for those who Partially Meet Expectations.

The CWU will be seeking the views of its members and other Telstra employees on the outcomes of the latest round of performance assessments and the system in general later this year.

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