Telstra denies ‘rank and yank’ claims

TELSTRA RECENTLY denied union claims that it has embarked on a campaign to force out older workers through performance ranking

TELSTRA RECENTLY denied union claims that it has embarked on a campaign to force out older workers through performance ranking.

The Communication, Electrical and Plumbing Union (CEPU) said Telstra had adopted forced ranking, allegedly to get around unlawful dismissal legislation

“The tactic done under the guise of performance management is known in the US as ‘rank & yank’,” the CEPU said.

“Forced ranking targets a disproportionate number of older, injured workers and workers with family responsibilities.”

However, a Telstra spokeswoman said this was “completely untrue”.

“Telstra subscribes to equal opportunity principles and actively encourages participation of older employees,”she said.

“Telstra complies with all legislation in relation to its employees, including the laws that govern the dismissal of employees.”

Like any employer, Telstra follows a process to properly manage the performance of its employees, the spokeswoman said

“Our focus is on working with our employees to achieve the most productive outcome for our employees and the business.”

In the US, older, injured workers and workers with family responsibilities were also more likely to be unionised, and forced ranking was a camouflaged invitation for discrimination, the CEPU said

“It is designed to rid a company of anyone in a workforce whom the employer should be assisting to balance work/family/disability issues, not flouting unlawful termination legislation,” the CEPU said.

Some US companies sack a set proportion of workers or groups of workers – often 10 per cent – each year, according to the CEPU.

“Ford Motor Company, Goodyear Tyres and finance giant Capital One have all been sued in the US for their unlawful use of forced ranking to target various classes of employees.”

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