TELCO HANGS UP ON TASSIE

Vodafone cuts 100 jobs

THE State Government will look for ways to claw back funding given to Vodafone after the company announced it would axe up to 100 jobs from its Hobart call centre.

Premier Will Hodgman said news the multinational telco would shed up to a quarter of its local workforce had come as an unpleasant surprise for both workers and his Government.

Vodafone chief strategy officer Dan Lloyd said falling demand for the service was behind the decision.

“Following a dramatic decline in call volumes and complaints, and a growing customer preference for online self-service, we have today commenced consultation on a proposed restructure at the Vodafone contact centre in Hobart,” he said.

“As a result of our network, product and service improvements, we are receiving significantly fewer complaints and calls from customers.

“Regrettably, this means we no longer need as many roles in our call centres, including Hobart,” Mr Lloyd said.

“The new structure will not be confirmed until the consultation process is complete, however we expect the number of impacted roles to be less than one hundred.

“As part of the consultation process, we will be calling for expressions of interest in voluntary redundancies.”

He said there would be no increase in the company’s callcentre workforce overseas as a result of the restructure. The company also has call centres servicing Australia in India.

During the 2013 federal election, Vodafone was granted $4 million to maintain 700 jobs at its Hobart call centre. The State Government contributed $850,000 and payroll tax relief.

In January this year, Vodafone confirmed it had repaid about $330,000 to the Federal Government after failing to meet key criteria of the grant.

Mr Hodgman said the State Government would also seek to regain any money it was owed.

“We will take the opportunity to review arrangements with Vodafone to ensure that if there has been any contra- vention of agreements previously made with respect to support for that business and Tasmania will claim its share or will claim back anything to which we are entitled.”

Mr Hodgman said his thoughts were with the workers affected by the cuts.

“First and foremost I think this is a terrible blow for the people concerned. I can imagine that they will be devastated, their families extremely concerned so we will do what we can to ensure that we support those people.

“We will immediately engage our skills response unit to touch base with people.”

Independent federal Denison MP Andrew Wilkie also condemned the cuts.

“This is a bad decision by Vodafone and a deep betrayal of the local community in Hobart.

“The company has made many promises . . . over the years and its corporate reputation hinges on it honouring them,” Mr Wilkie said.

The telco moved its southern Tasmanian operation from Huntingfield to the Hobart CBD in April 2015 after the election funding pledge.

The number of jobs at the Hobart centre peaked at 1021 but has fallen to about 400.

A spokesman for the Australian Services Union said the announcement was very disappointing and the union would meet staff today to discuss the implications.