Telstra will slash 800 jobs from its Sensis division. Credit:Rob Homer Mr Allan said the changes were necessary in order to support growth in its digital business and respond to heightened competition from rival online and mobile search directories. "As a leader in digital marketing services and print directories serving Australian businesses, Sensis needs to remain responsive to the changing media landscape. While these decisions are difficult, they are necessary to ensure Sensis maintains its competitive position," he said. Union battle Telstra sold 70 per cent of Sensis to US private equity firm Platinum Equity in January, leading the CPSU to suggest that plans to strip out costs in the business through redundancies had been in train since well before Christmas. It was trying to get a ruling from the Fair Work Commission to require Telstra to be more open about its strategic planning where jobs were at stake.

Responding to the confirmation of job losses from Sensis, CPSU national president Michael Tull said cutting up to 800 jobs and closing regional offices would irreparably harm local economies and erode the nation's skills base. He said the CPSU believed that Sensis had shed almost half of its entire workforce in the past 12 months, with at least 600 roles being moved to the Philippines and India. It estimated that Telstra's shadow overseas workforce now numbered 10,000 – or roughly a third of its total staff complement. He said Telstra's actions were sending shockwaves through communities that were already seeing jobs disappearing at an alarming rate, and that the changes were not essential. "Telstra likes to spin the line that these jobs are going because Sensis is a business in distress. That's wrong. Sensis still made more than half a billion dollars in net profit and is successfully making the transition from a traditionally paper-based business to a digital one, thanks in no small part to the people who work there," Mr Tull said. Everyone knows the job market is really tight and you need as much time as possible to try and find a new job

"Telstra executives need to be accountable for the thousands of Aussies they are putting out of work. We need new obligations on employers like Telstra, to build the skills and increase the employment security of Australian telecommunications workers." The CPSU is meeting with Telstra today and Mr Tull said it was also encouraging the government to create a plan to encourage companies to retain Australian workers. "With billions of public money going to Telstra through the NBN and other government contracts, Australians expect Telstra and the Government to stand up for Aussie jobs," Mr Tull said. Communications Electrical and Plumbing Union communications division president Len Cooper earlier told the AFR he was planning a multi-platform ad campaign worth more than half a million dollars in an effort to shame Telstra into backing down. Mr Cooper also said the union would try to work with the Australian Greens, the Democratic Labour Party and other independent MPs to introduce a legislation that would punish Telstra and other companies trying to outsource their workforce overseas, through the tax system.

Sensis restructure Under the proposed restructure the Sensis announcement said two telephone sales centres of excellence in Melbourne and Sydney would be created, to handle customer service. It also said a new mobile and flexible operating model for face-to-face sales teams designed to reduce administrative workload for sales staff would be introduced. It also flagged increased use of existing outsourcing suppliers and a reduction in the number of products. The Sensis statement gave no details about the likely locations of job losses, but the CPSU said many would come from regional areas, already struggling due to the declining manufacturing sector. As well as Sydney, Canberra and Melbourne, affected sites are expected to include Geelong, Hobart, Townsville, Ballina, Cairns, Coffs Harbour, Adelaide, Wollongong, Darwin, the Sunshine and Gold Coasts, the NSW Central Coast, Newcastle and Penrith.

Mr Tull on Monday lamented Telstra's decision to keep its plans under wraps until late in the process, saying many affected workers would struggle to find new work as a result. "We have been hearing concerns about this since before Christmas ... It is an awful position for the affected staff to be in, as they hear the rumours, particularly in regional areas like Ballina and Geelong, where everyone knows the job market is really tight and you need as much time as possible to try and find a new job," Mr Tull said. In the company statement Mr Allan said consultations with employees and the union would now begin. "These are very difficult decisions and are never taken lightly. We are working with our people to keep them informed and to provide support for those who may be affected by the proposed changes should they proceed."