Is Telstra bailing from Kapiti?

BY ALASTAIR STEWART - KAPITI OBSERVER

Seventy jobs are on the line as TelstraClear threatens to move its Paraparaumu call centre overseas.

The company was conducting a "feasibility study" on closing down the three-year-old national call centre in Kapiti, moving operations to the Philippines.

It would be a "significant blow" to the community where, despite positive economic signs, unemployment continued to grow, said mayor Jenny Rowan. "This would be a very sad day for our community, creating unemployment at a time when we desperately need to be creating jobs."

About 70 people, plus temporary staff, worked at the call centre, including elderly workers, sole income family earners, newly married couples, and others who had just taken out first-home mortgages, said one worker, who would not be named. "I always thought TelstraClear were good and cared about their staff but in reality now it comes down to it they don't. We are just a figure and they're just after profit."

Company spokesman Chris Mirams refused to elaborate on the company's written statement, except to stress that it was only a study at this stage: "It's not in anyone's interest to jump to a conclusion that [the call centre] will move."

But workers spoken to said there was an air of inevitability about the proposal.

"Most people have got the feeling that it's definitely going to end," said one employee. "It's just gutting for all the people there and now the uncertainty makes a negative workplace."

TelstraClear said the study, due for completion in March, aimed to "improve customer service and maintain its competitiveness".

Kapiti Chamber of Commerce chairman Mark Ternent questioned that logic.

"Kiwis like talking to Kiwis and Kiwis hate dealing with poor call centres. Could TelstraClear retain the call centres in New Zealand, supporting the economy in which they operate, and use this as a positive point to stand out from their competition?"

Engineering, Printing and Manufacturing Union organiser John Kerr said the business case failed to stack up.

"While the numbers might add up on wages, when you consider the advantages of New Zealand-based call centres in winning and retaining customers we don't believe such a move would make business sense."