
Issue No 28		27 August 1999

News

Vizard Smokescreen Clouds Computer Deal

Despite talk that Steve Vizard has walked away from his Virtual Communities project with the ACTU, the entrepreneur and Telstra Board member remains a key investor in a deal which could net him millions.

The ACTU' executive this week gave its in principle support for the Virtual Communities deal by a vote of 49-1 (that some scoreline, Costa!). This means that Vizard's company can move to the next stage of its plan to exchange cheap computers for e-commerce rights over the union movement.

Sole dissenter, Labor Council secretary Michael Costa says, despite the vote, there is still a high degree of scepticism - even among those who voted for the plan in principle.

"It was very clear that there are major holes in the proposal as it stands. Most of the pitch from VC was once again focussed on selling the merits of the Internet as a concept rather than the specifics details of the commercial arrangements," he says.

"For those union officials who have not thought about the Internet, it was clear they were mesmerised by its potential rather than the specifics of this deal.

"Many, for instance, were unclear about the difference between a portal and a web-site. This should send alarm bells ringing."

This week's executive meeting heard nothing about the key aspects of the proposal such as portal control and commercial share. And the promoters indicated they don't have a computer supplier deal finalised; they did not have an ISP deal finalised; and that pricing projections have increased in the past few weeks from $8 per week to nearly $9.

But it was confirmed that unions won't be guaranteed any equity in the project and that the portals as opposed to union web-pages would be controlled by Virtual Communities - with some minor restrictions on commercial content to primarily appease the industry funds. It was also revealed that the VC would target non-unionists at a slightly higher rate - $9.95 per week.

"The reason I voted against it was so it was very clear that the Labor Council was no longer bound by any exclusivity arrangements the ACTU had entered into and would now be free to pursue alternate proposals," Costa says.

He said Labor Council would continue to scrutinise the Vizard deal and develop alternative options for the ACTU Executive to consider. Telstra has already contacted Labor Council offering an alternate proposal on hardware, Internet access and telephony.

"This is akin to the Dutch buying Manhattan Island off the native American for a few beads and trinkets - in this case the beads are cheap home computers and the island is the union movement's presence in cyberspace.

"I would, however, compliment the people at Virtual Communities for snaring the deal of a lifetime - they have chosen their target well..."

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  Issue 28 contents

Interview: Talking Turkey
A full transcript of an important interview with the Minister for Workplace Relations, the Hon Peter Reith.

Politics: What Reith told the ILO
Workers Online has recevied a transcript of roving statesman Peter Reith's talk to the ILO in Geneva. This one's not satire.

Unions: What the Workers Said
Actor Di Smith was one of nine ordinary workers who addressed this week's rally. Here's what she had to say.

International: Cancelling the Debt
Sign this Jubilee 2000 email petition now and tell the world's most powerful leaders to cancel the unpayable debts of the world's poorest countries by the year 2000.

Environment: Greens, CFMEU call for Action on Ceiling Dust
Residents and workers, associated with houses damaged in the freak hail storm that hit Sydney earlier this year, may have been exposed to harmful levels of toxic materials found in the ceiling dust of the damaged buildings

History: Eveleigh Railway Workshops celebration
Former workers and their families from the historic Eveleigh Railway Workshops in inner-Sydney are holding a picnic reunion and folk music festival on the site this Sunday.

Republic: Does the Republic Need a President?
It seems inevitable that Australia will eventually become a republic but do we need a president?

Satire: Liberals May Need to Sell of More of Telstra
'We're running low in key marginals,� says Alston

Review: A Kind of Violence
Extracts from Yosi Berger's new book, telling the real stories behind workpalce safety.

» Shock New Stats! Readers Desert Newspapers

» Surfing the Wave

» Vizard Smokescreen Clouds Computer Deal

» Youth Wages: Is Bevis a Butthead?

» Which Bank Harasses Sick Workers?

» SOCOG Eyes Wide Shut on Games Gear

» Scully Uses Reith First Wave Against Rail Workers

» Reith Building Blitz Hits Bum Note

» Entitlements Focus Shifts Back to Woodlawn

» Fresh South Coast Ballot Called

» "Big Drum Up" For East Timor

» Eric Lee Public Forum

» Guest Report

» Sport

» Trades Hall

» Piers Watch

» Vizard: Net Content Is Vital

» No, No, No to MSN Model

» The Vizard deal. Is it another great deal for you!!!!???

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