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Issue No. 151 | 06 September 2002 |
Looking for the Light
Interview: Packing a Punch Bad Boss: Basher Takes Back Passage Unions: Five Star Shafting Economics: TINA � Rest In Peace International: Against Bush's "War on Terrorism" Environment: Saving the World History: A Radical Scribe Poetry: With A Little Help From My Friend Satire: Colonel Gaddafi Promotes Himself to General Review: Workplace Dictatorship
Cole Comfort: I�m Not Biased Grassroots Drives Safety Campaign Deloittes Curry Favour on Sub-Continent Rail Workers Buck Individual Contract Wage Bribe Bush Regenerators Weed Out Dodgy Deal Hairdresser Wins Fight For Wage Justice Cabin Crews Argue for �Safety in Numbers� �Slave Labour� In Insurance Industry Beattie Plods into Risky Territory
The Soapbox The Locker Room Week in Review Bosswatch Women
Charity Begins At Home
Labor Council of NSW |
News Deloittes Curry Favour on Sub-Continent
CPSU officials are tight-lipped about the prospect as they continue to seek security for threatened Deloittes staff, whose employer contracts principally to Telstra.
More than 100 IT consultants grabbed the union option after being threatened with 50 percent salary cuts last week. Their decisions paid immediate dividends when the AIRC green-lighted an interim award and over-ruled Deloittes', cop the cuts or quit, ultimatum. The story, though, has another dimension with increasingly loud industry whispers that the company is considering a sub-contintenal option. Essentially, a group of multi-national IT contractors, principally Deloittes, IBM GSA and EDS, have found themselves deep in the turbulent flow of federal government's outsourcing shambles. They leapt at the pot of gold held out by the Howard Government when it decided, for primarily ideological reasons, to push IT oursourcing. Classically, they entered an entity like Telstra or the ATO and hassled for its IT work; cherry-picked key employees; dumped others and walked away with substantial profits from taxpayers or consumers. By and large, however, they conspicuously failed to deliver the promised savings to host entities who, once bitten, were much more aggressive in negotiating second-round contracts. To maintain their earns, the multi-nationals now face the prospect of substantial internal costs cutting, thus the Deloittes move to slash workers incomes by up to 50 percent with a two week, take-it or leave-it, deadline. With IT workers deciding on collective action to protect their positions, the next logical step is to flick Aussie workers in favour of those from countries which are largely tax and labour law free. It would make economic sense and dovetail with labour market competition espoused by Workplace Relations Minister Tony Abbott and his Foreign Affairs off-sider Alexander Downer. Politically, insiders say, Telstra couldn't make that move. By flicking key elements of its operation off to the disguise of sub-contractors, however, pundits believe they might be able to achieve the desired result.
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