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An NBN that serves the national interest

Jeff Lawrence, Secretary, Australian Council of Trade Unions | November 18, 2008

THE creation of a National Broadband Network is an important investment in Australia's future and will drive productivity and the economy.

An NBN that serves the national interest

The NBN should not be a licence to inflate prices and discourage competition in the industry, says ACTU Secretary Jeff Lawrence

Our members will benefit from this initiative as workers and as users of the network.

But given the importance of the project, it is well worth it to take the time to get the framework right so that the NBN serves the national interest, creates good jobs for the future, and takes into account the needs of all Australians.

The project should not be allowed to replicate the sub-standard service, over-charging and poor take-up that characterises Australia’s current broadband market.

After a decade of neglect by the Howard Government, Australia is not getting the broadband service it deserves and consequently broadband penetration is 16th out of 30 OECD countries, at less than 25 subscribers per 100 habitants.

Infrastructure has decayed because of under-investment by Telstra in its copper network, and internet speeds are well below acceptable.

Broadband prices are the eighth most expensive in the OECD. The average monthly cost of a broadband connection is $70, while the basic cost is $57.

Honouring an election commitment, the Rudd Government is preparing to invest $4.7 billion in the new National Broadband Network.

Despite assertions to the contrary, the NBN will be a functional re-monopolisation of the telecommunications sector in Australia at the infrastructure level, whoever wins the bid.

So for that amount of investment, the government is entitled to demand that a core set of principles are met.

Firstly, the NBN must be operated by a company that will drive innovation, maximise competition and amplify take-up.

It should not be a licence to inflate prices and discourage competition in the industry.

And crucially, the successful bidder must have a co-operative relationship with its workforce within the framework of the federal Government’s Forward with Fairness industrial relations policy.

This means recognising the right of employees to collectively bargain – conducting those negotiations in good faith - and have union representation, and providing quality jobs with decent pay and conditions.

No government could seriously consider allowing a multi-billion tender to go to a company that does not have the appropriate industrial relations arrangements in place.

The ACTU and its three telecommunications affiliates – the Communications, Plumbing and Electrical Union (CEPU), the Community and Public Sector Union (CPSU), and the Association of Professionals, Engineers, Scientists and Managers, Australia (APESMA) – strongly endorse the federal government’s policy to provide Australia with a highspeed NBN.

Given what is at stake, we have drawn up a statement of principles for the network (Fibre to the Future: Principles for Australia’s National Broadband Network) that must be must be met for business, the community, the workforce and the environment if NBN is to provide the foundation for the future of our society and economy.

For business, the principles are incentives to drive future infrastructure development; genuine open access and equivalence, enforced by the ACCC; and maximising take-up so that monopoly power cannot be used to inflate prices.

For the workforce, the successful bidder must commit to rebuilding the national skills base; must provide quality jobs, with decent pay and conditions and secure employment, recognising the rights of employees to collectively bargain and to have union representation.

For the community, there must be equal access for all end users.

For the environment, the NBN must promote tele-commuting, to reduce carbon emissions; the environment must be protected during construction.

We believe that all bidders should be required to commit to this statement of principles as a pre-condition of their bid being successful, and have told the government so.

It is likely that there will be at least two bidders when tenders close on November 26: Telstra and the Terria consortium.

Unions have been in constructive discussions with Terria about endorsing these principles, including the development of a memorandum of understanding for a cooperative workplace relationship. Telstra, by contrast, has refused to continue discussions with unions.

We are concerned about the bullying and uncompromising approach Telstra has adopted throughout the tendering process.

The ACTU's Corporate Research Unit recently produced an analysis of shareholder risks for Telstra associated with the National Broadband Network.

This analysis looked at Telstra's threats to "walk away" from the process if certain conditions were not met, along with the possibility of increased regulation to protect the national interest in the event that Telstra was successful.

It concluded that Telstra's approach had exacerbated the risk that up to $11.9 billion in market value could be wiped from the company.

We will not take sides and have no preference for one party or the other winning the contract.

All we want is to ensure that Australia gets the broadband network it deserves.

The Super Blog will have the unedited opinions of leading players in the $15 billion plus NBN project. It will run over a few days and feature leaders from the telco and government community. Shadow Communications minister Nick Minchin kicks-off the series; his counterpart in government, Stephen Conroy is the final blogger.

Day 1:
Shadow Communications minister Nick Minchin

Day 2:
AAPT CEO Paul Broad

Day 3: Terria chairman Michael Egan

Day 5: David Quilty, Telstra group managing director, public policy and communications 

Day 6: Maha Krishnapillai, Optus government and corporate affairs director 

Final day: Stephen Conroy, Minister for Broadband, Communications and the Digital Economy

Your Comments:

15 Comment(s)

Petra of Qld 10:27pm November 23, 2008

Jeff, I'm pleased to hear someone else tell the story about Telstra and bullying. I know all about it, I have the misfortune to be a Telstra customer. I will add, I'm not a Telstra customer by choice.

NB 9:54am November 21, 2008

Since the ALP is back in power, I suppose the unions are now going to try push it back to the old days, one must be a member of a union to get employment, this certainly smells like it, else what the hell has the union got to do with it, a company pays my wages, not the damn unions, who only extort you. I've been union free for 10 years now, the conditions have been as good or better, the company increases my wage every year by a nice sum, I have excellent working conditions, a relaxed friendly workplace, the company provides drinks every Friday afternoon, including munchies, all without a union in sight.

Oh and Jeff, I'm pretty sure you'll find that broadband was available in the US and UK when your labour mates were last in power, and they did nothing either, so drop the usual anti-coalition political rhetoric unions are well known for spinning.

Kevmeister of Melbourne 3:47pm November 20, 2008

It seems to me that unions are having trouble justifying their existence these days. With the Federal government prescribing minimum standards and conditions, it seems more like unions are trying to screw employers for anything extra. Look at Ed Husic's comments above about achieving "... pays our members well and rewards them with excellent conditions".

Unions shouldn't be necessary and the government should be prescribing the minimum standards which all employees have a right to. And those minimum standards should be the "excellent conditions" which Ed speaks of.

Why should a squeaky wheel (the voice of the union) get any more preference or a better deal than any other hard-working Australian who is not affiliated with a union?

Ardent 1 of Perth 3:27pm November 20, 2008

Husic and Lawrence, why would any organisation want to deal with athother that clearly cannot be trusted? Is it any wonder why Telstra walked. Can you also inform the public why the sudden interest in Telstra by the ACTU?? Perhaps the union movement should learn to communicate without telling furphy's and definately without the spin.

Dave of currently in London 7:10pm November 19, 2008

It is good to see that all Jeff's Union mates came out in support of his comments and of their own fantastic contribution to society generally. It was even nice to see that Jeff congratulated the ALP for being so brilliant and blamed the Libs for anything at all that might go wrong.

I have worked in the Telco industry in Australia for almost 10 years and at no time have I had Union representation, nor have I needed it. Contrary to what a Union would have you believe, my employment was never taken from me, nor was my pay ever reduced to $1 per hour. My employer always provided good working conditions where, if I worked hard, I would be rewarded. At the same time, I have never been the perceived enemy of the Union, management.

Personally, I do not see the most important issue about the NBN to be Unions at all. In fact, I have a bit of problem with Jeff confusing that it is. Perhaps for the Union it is, but for the rest of the population it is more important to understand what they will be getting from the NBN for their money. Let's debate that instead.

My concern is that the tight links between the Union movement and the ALP may have some influence on the NBN at all.

Positive Thinker 4:45pm November 19, 2008

If there has been any underinvestment by Telstra why would anyone be surprised with the ACCC taking such a preposterous stance and the constant threat of the Government confiscating assets which amounts to sovereign risk. Telstra is not a welfare providing body and it was the ALP that commenced the privatisation mania but we have to accept the reality of the situation now. If the Government wants subsidised services then it should provide the subsidies for particulare uneconomic services or just butt out and allow investors to get a reasonable return and consumers to get a better service faster. Why bother pandering to Singtel, a Singapore conglomerate, at the expense of an Australian company that can do the job without any money from taxpayers whatsoever and is willing to do so fast and efficiently with longer term lower prices for consumers. Let's get on with it. Some nations would love to have a competent company like Telstra that can do the job without any government money. The previous and the current governments aproached to this matter have been muddle headed and unproductive.

Gradius of Adelaide 2:39pm November 19, 2008

It is a great pity that no one, including Jeff lawrence, seems to have recognised the need to review the regulatory framework which might have stifled investment and created the environment to which Jeff aluded in his following comment ... "Infrastructure has decayed because of under-investment by Telstra in its copper network, and internet speeds are well below acceptable". I am sure that we all want a far better deal but lets not kid ourselves, the outcome will be politically attractive and not conducive to achieving the far better deal.

allan of canberra 1:50pm November 19, 2008

I urge the unions to get behind Telstra as the ONLY serious option for the Nation!!

Steve of Perth 12:51pm November 19, 2008

Ed, if the ACTU and the unions are serious about working with Telstra and others then why have the side agreements. On reading of these side agreements they appear be be a method to recruit more members and have Telstra pay for it. If this is true then no wonder Telstra walked away.

Jeff of Melbourne 12:39pm November 19, 2008

So the ACTU wants pre-conditions for the award of the tender for the NBN. That's fine, that's their prerogative. But denouncing Telstra for having pre-conditions (that could risk $11.9Bn in market value of the company) is somewhat hypocritical, don't you think?

On a slightly different point: The leading party in Terria (doesn't that sound like it's a dog?) is Optus - an organisation that has never recognised unions. Just an observation that may or may not have a bearing in this.

Perhaps there is a risk but I am sure the bean counters at Telstra have worked out that the risk of not having pre-conditions is greater than the risk of having them.

Vic Mooren of Melbourne 11:03am November 19, 2008

Telstra make big money with old copper systems, every where, on the 26th November,Terria "Win" the Tender for the NBN, From that day, Australia, should be the top of the world, in Telecommunications.(3 years for all installations and operations of the NBN). My first time I reading very good opinion from Mr. Jeff Lawrence, congratulations and my best for all Union. My experience of the International level in Telecommunications support the NBN, and all Australian people feel owner of the new NBN, because is the more important for all Australia, in economic, in job, for business Companies, for University, etc.

Ed Husic of CEPU 9:12am November 19, 2008

As a union that represents employees across the telecommunications sector, we want to see a strong industry that pays our members well and rewards them with excellent conditions - our position is detailed clearly here: http://www.cepuconnects.org/telecommunications/telstra-eba-2008/promoting-jobs-fair-pay-in-our-industry/index.cfm What Jeff has spelt out in his contribution represents a coherent, open framework to promote the interests of the nation, of our members and of the companies that work for them. The CEPU, CPSU and APESMA have repeatedly offered to meet with Telstra since they walked away from wage talks and we remain committed to engaging with them - but on the basis of an understanding and regard for our members interests and needs. There's a big job ahead for whoever wins the NBN project. Our members have a big part to play in that project. They're eager to contribute and understandably expect to be fairly rewarded and regarded for that commitment.

Tony of Melbourne 8:34am November 19, 2008

I wouldnt expect anything else from a union but lets face it unions have been on the decline for years and thats not because of companys such as Telstra its people power why would the government want to be held hostage to unions when it knows private enterprise is not willing to make investments when unions are involved !

David of Sydney 5:47pm November 18, 2008

We should thank our lucky stars folks like the ACTU are still around. We need balance but more importantly we need a fair go and we need to have a situation where people are treated with dignity and respect. As workers we would be trampled all over the place if not for the folks at ACTU. When did we become a country without compassion? It's good to see Jeff Lawrence and the ACTU realises how important the NBN is and how it will impact the workers. If they had no voice, we would be on $1 an hour IF we still had jobs!

Union -"were on the road to nowhere" of melb. 5:35pm November 18, 2008

Oh, so it was the actu who was behind the shareholder letter that went out with the annual report. Clearly the unions cant seem to work with Telstra, but unfortunately for them if they think they have an alternative with Terria they should pursue it. Regardless of what cliff it leads to. Hint, If the union finds Terria receptive / acomodating, there a reason for that, and its certainly not for the benefit of the union.

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