Union group warns over Telstra wage cuts

Updated August 25, 2008 13:16:24

The Australian Council of Trade Unions says telecommunications company Telstra plans to cut the wages of thousands of its workers by 15 per cent over the next four years.

The union body says leaked documents show management also has a secret strategy to cut call centre jobs and outsourced work.

The ACTU is calling on the Federal Government to immediately replace the WorkChoices system with new industrial relations legislation, which could stop the wages cut.

But Telstra spokesman, Martin Barr, says the company is acting within the law.

"We have promised with any staff collective agreement that we'll preserve entitlements that are important to our current employees," he said.

"The other point I'd like to make is that everything that we are doing is consistent with Labor party policy and the law."

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