No Forced Xmas Leave in Optus

Date: 13 December 2001

On the 26th November 2001 Optus management advised all employees in the Optus Business section of the Company that they would be required to take annual leave from 24th December 2001 to 11th January 2002 - whether the employees had accrued such leave or not.

Following retrenchments of employees in October and November through a process known as "Operation Win Through", Optus management declared that this "Christmas Shutdown" was " a further opportunity for us to reduce costs".

All non essential employees in Optus Business were told that "you will be required to take leave over this period". In anticipation of questions (and presumably complaints) from employees about this direction, Optus prepared a question and answer sheet for managers to refer to for guidance.

In this document Optus stated "Under the NSW annual leave legislation, Optus can direct employees to take accrued pro-rata leave once a year during a "close down" period in all or part of the business".

The CEPU immediately received a large number of inquiries from members about this directive from Optus management. The union represented these concerns to Optus. The union also expressed the view that Optus had no right to direct all employees in the way Optus claimed.

Optus initially refused to meet with the CEPU about this issue unless the union identified individual employees who had tried, but failed, to have their concerns addressed through the grievance procedure of the enterprise agreement.

The CEPU refused to give Optus any details about individual employees and notified a dispute to the Australian Industrial Relations Commission, (AIRC), which was listed for hearing at 4.30pm on Wednesday 12th December 2001.

The CEPU did, however, say to Optus that it was ready to meet to try to resolve the matter before the AIRC hearing if Optus wished to do so.

After discussions with the CEPU, late in the afternoon on Wednesday 12th December 2001 Optus agreed to send the following information to all Optus Business employees;

"Christmas Shutdown - Clarifiaction of Leave Arrangements"

As you are aware, Optus Business is closing down from 24 Decembers 2001 to 11 January 2002. This decision has been taken by Optus in order to reduce costs, match our customers needs and more effectively manage annual leave.

With your cooperation, we have achieved our target of reducing our annual leave liabiltiy by $4 million. This saving directly impacts our profit result and helps to close the gap to our end of year target. I would like to sincerely thank you for helping us achieve this great result.

It has become apparent, however that some issues require further clarification in order to assist us in the implementation of this initiative.

We are seeking the agreement of all Optus Business employees to take leave over this period in accordance with our Employment Partnership Agreement (clause 8.1).

1. I would like to emphasise that if you have any unresolved issues because of the proposed period of leave due to family commitments, existing leave arrangements for another time or because you have just returned from a period of leave, you should contact your manager immediately. In such cases your manager will review the circumstances and where appropriate alternative arrangements will be implemented.

2. I would like to remind you that you may request that the period of the closure be taken as leave without pay or leave in advance where you are able to demonstrate a valid reason for doing so eg evidence of a confirmed future holiday booking. Please note that your manager can authorise future leave requests to enable you to meet further planned holidays at this time (this is consistent with effective ongoing managment of annual leave balances).

3. Any period of leave taken as leave without pay taken by employees during hte closure period will be regarded as service with Optus for all purposes.

This clarification is intended to ensure that you discuss any outstanding conerns you mau have about the above with your manager with a view to achieving a mutually satisfying resolution. If you wish to discuss any of the above issues with your manager, please cotnact them immdiately. Once again thanks for your support."

In addition Optus has given an undertaking to the CEPU not to recover any monies in respect of annual leave owed to Optus by Business employees who take ARL in advance as a result of the Closedown and subsequently cease employment with Optus prior to reaccruing the leave. Optus have the right to recover any moneys owed by employees to Optus on cessation of employment from termination payments. This right is accorded to Optus by the EPA.

The CEPU has never been opposed to employees who genuinely agree to take leave doing so over this period. The CEPU has been determined, however, to ensure that employees are not mislead about their rights and entitlements.

The clause of the Optus Employment Partnership Agreement now referred to above by Optus makes it clear that it is the employee's choice to enter into an agreement with Optus to take leave for the period of closure.

The large number of employees who have already applied for leave, and who haven't already rearranged their lives accordingly, now have the opportunity to withdraw that application in the circumstances described above.

If any member experiences any difficulty in having their concerns addressed by Optus management in relation to their leave arrangements for the closure period they should contact the union immediately.

Please Note:

The Optus Employment Partnership Agreement and the Optus Award 2000 are the legally enforceable instruments which determine the terms and conditions of employment for all Optus employees employed under them. The Agreement and the Award are both available on the CEPU website and can be provided to members in hard copy on request. If members have any questions about their conditions of employment they should not hesitate to contact the union.

For further information

Contact:	Colin Cooper
Union:	Labor Council of NSW
Contact Mobile:	0419 057037

LaborNET is proudly created, designed and programmed
by Social Change Online for the Labor Council of NSW
[Credits] [Site Matters]