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Victoria’s Workplace Rights Advocate investigates pay cuts at Lufthansa’s GTS

Victoria's Workplace Rights Advocate (WRA) has today announced an investigation into the individual contracts being offered by Lufthansa's Global Tele Sales (GTS) after concerns have been raised with the WRA by the Australian Services Union.

The ACTU Secretary Greg Combet has also raised concerns about GTS employees copping substantial pay cuts and losing basic conditions like award sick leave entitlements under the Howard Government's new AWA individual contracts. ACTU Secretary Greg Combet said:

"Today we have another example of the impact of the Howard Government's new IR laws and the fact that the Government's AWA individual contracts are being used to cut worker's pay rates and undermine Award conditions.

Around 80 staff at a Melbourne call centre operated by Global Tele Sales - a subsidiary of the giant German airline Lufthansa - have been offered AWA individual contracts that cut their take home pay by up to $80 a week.

The AWA contracts cut evening and weekend penalty rates and penalise staff for taking sick leave or leave to care for a family member.

The Lufthansa AWA example follows the case revealed this week of a young woman miner who was bullied and sacked after she refused to sign an AWA individual contract that required her to pay a $200 'fine' if she called in sick with less than 12 hours notice.

These examples of unfair AWA individual contracts follow a recent admission by the Office of the Employment Advocate that every AWA individual contract registered under the new IR laws has removed at least one award condition and:

• 20% of AWAs don't even provide the minimum sick leave or 4 weeks annual leave
• 64% have removed leave loading;
• 63% cut penalty rates and overtime;
• 52% cut shift loadings;
• 14% pay a casual loading of less than 20%; and
• 16% removed ALL protected award conditions.

This is another clear example of how the Howard Government's new AWA individual contracts are all about cutting workers' pay and conditions," said Mr Combet.

The WRA annnouncement

PAY CUTS INVESTIGATED BY WRA

Victoria's Workplace Rights Advocate has launched an investigation into a plan by an airline call centre operator to offer individual contracts which offset pay cuts with performance bonuses.

WRA, Tony Lawrence said yesterday that his office had received complaints in relation to an offer by Global Tele Sales, a subsidiary of German airline, Lufthansa which appeared to be discriminatory.

The company's had proposed Australian Workplace Agreements to staff as a replacement for an existing collective agreement which expires in December. Mr Lawrence said the two year contracts appeared to link performance based pay rises with the number of sick days taken which could have serious legal implications.

"We have received complaints about this proposal from the company to its staff and we are formally undertaking an investigation.

"At a preliminary stage we have real concerns at both the legality and the fairness of what has been proposed. It has clear implications for people who fall ill through no fault of their own. It also has implications for people who are forced to care for sick or incapacitated relatives."

Mr Lawrence said as part of the investigation the WRA planned to refer part of the complaint to the Victorian Equal Opportunity Commission for its evaluation: "We are concerned that the proposed agreements raise possible issues of discrimination," he said.

The Office of the Workplace Rights Advocate promotes fair employment practices and assists workers to negotiate decent pay and conditions.

What can you do

Hundreds of people have also expressed their concerns by joining the ASU's email campaign calling on the Company to withdraw the contracts.

You can join the campaign here: http://www.asu.asn.au/campaign/gts2006-06/protest/protest_form.html

For more information, see our earlier news:

Media Release: AWAs offer for 80 Melbourne workers - is it unlawful?http://www.asu.asn.au/media/airlines_overseas/20060703_gts-media.html

Call to action: Lufthansa's Global Tele Sales uses laws to cut wages http://www.asu.asn.au/media/airlines_overseas/20060703_gts.html

Media contacts

Media Contacts - c/- Kelly Lofberg ph 0423 375 833

- Greg Combet, ACTU Secretary

- Ingrid Stitt, Australian Services Union VIC PS Branch

Workplace Rights Advocate - Paul Robinson on 0418 996 967