On The Line - the Future of Australia's Call Centre Industry
This discussion paper looks at the ACTU Call Centre Unions' policy for the direction of the call centre industry 
Executive Summary 
The expanding call centre industry is in a unique position to provide quality employment opportunities for Australians in the technology and customer service sectors. 
To sustain such growth, Australian call centres must be able to provide a well-trained and professional workforce, backed up by appropriate technology and commitment to world customer service standards. 
Call centres and state governments must commit to providing quality employment opportunities for Australians and a high standard of customer service. 
Call centres have injected optimism and opportunity into communities with high levels of unemployment. It is imperative that the skills of staff in call centres are developed in order for these opportunities to remain in the long term. 
Setting the Standard 
Australian governments spend substantial amounts of money attracting companies to establish call centres in their areas, particularly in regional centres with high unemployment. But there are currently little or no requirements imposed on companies that receive such investment incentives. 
The ACTU Call Centre Unions Group believes the investment made by Australian taxpayers should be returned to the community by way of: 
•	Quality customer service 
•	Long-term skilled employment opportunities 
•	Appropriate employment standards 
•	Ongoing training and skills development for employees. 
The call centre industry is largely unregulated and wages for call centre employees are lower than those in most countries that offer similar standards of infrastructure, political stability and a multi-lingual workforce. The ACTU Call Centre Unions Group believes the lack of regulation has lead to the development of significant discrepancies in wages and conditions in Australia, 
Developing Our Advantage 
The ACTU Call Centre Unions Group believes that the competitive advantage of Australian call centres should be the skill of their staff and professionalism of their operations. 
•	Benefits to call centre employees: 
•	Job satisfaction from providing good service 
•	Training and career development 
•	A meaningful career path 
•	Long-term, well-paid, skilled employment opportunities. 
Benefits to the call centre industry: 
•	Gaining a reputation as a provider of reliable and quality service 
•	Access to a pool of well-trained and professional employees 
•	Retention of experienced employees due to reduced staff turnover 
•	Quality customer service. 
A Plan for Action 
The ACTU Call Centre Unions Group believes the key to achieving these goals are: 
•	Increased training and development 
•	Commitment to support staff to provide quality customer service 
•	A reduction in the current rate of staff turnover 
•	The development of appropriate minimum wages and conditions regulation in the industry 
•	Increased participation of staff in key decisions regarding improvements to the provision of customer service. 
A Charter for the Future 
The ACTU Call Centre Unions Group is seeking commitments to a call centre charter which will contain statements of commitment by call centres to: 
•	Training and development of staff, in particular in e-commerce applications when appropriate 
•	Genuine pursuit of excellence in customer service 
•	Appropriate minimum employment standards 
•	Adequate support of staff in the provision of quality customer service. 
The ACTU Call Centre Unions Group is seeking Government support for the Call Centre Charter. Governments will be asked to: 
•	Encourage new call centres to commit to the Call Centre Charter 
•	Give priority to call centres that have signed the charter when awarding Government business 
•	Commit government call centres to the Call Centre Charter. 
Introduction 
The call centre industry is burgeoning in Australia. The growth of call centres has injected optimism and opportunity into communities suffering from high unemployment. But with growth comes the need for an industry plan that allows call centre staff, and the communities they serve, to share the benefits of fast growth. 
The skills of call centre staff must be developed continually in order for these industry opportunities to remain viable in Australia for the long term. The issues and solutions raised in this paper are designed to ensure that all stakeholders contribute to the long-term wellbeing of Australia's newest industry. 
The growing call centre industry is in a unique position to provide quality employment opportunities for Australians. Equally, well-trained professional call centre employees are able to deliver high quality customer service to Australian and overseas consumers. 
This paper appeals to call centres and state governments to commit to the principles of quality employment opportunities for Australians and a high standard of customer service for consumers. 
To ensure sustainable employment growth, overseas and local customer service contracts must be secured and then maintained. Australia already provides competitive wage levels with other Asia pacific countries along with a stable economy and infrastructure. A recent survey found the 'skill sets of available staff as one of the most critical and widely considered factors' for companies selecting or establishing a call centre. 
To sustain such growth, Australian call centres need to continue to provide a well-trained and professional workforce, backed up by appropriate technology and commitment to world customer service standards. Call centres are well placed to represent an e-commerce gateway for many companies. This development will represent a significant opportunity for quality employment opportunities in the technology sector for Australians. 
The ACTU Call Centre Unions Group will provide high-level support and representation for people who work in call centres. The ACTU Call Centre Unions Group consists of the Australian Services Union (ASU), the Community and Public Sector Union (CPSU), the Communications, Electrical and Plumbing Union (CEPU), the Finance Sector Union (FSU) and the National Union of Workers (NUW). 
Defining The Industry 
A call centre uses telephone and computer technology to deliver services to customers. Some call centres now call themselves 'total customer service points' or 'contact centres' to reflect the more integrated use of electronic communication such as e-mail and the internet. 
It is estimated that the call centre industry in Australia currently employs approximately between 80,000 - 160,000 staff in around 2000 - 4000 call centres. In 1999, call centre jobs accounted for almost one half of new private sector employment and it is estimated that the Australian call centre industry is worth more than $1.8 billion. 
Driving Growth 
The call centre industry is growing massively because servicing customers and providing pre and post sale support, as well as generating business using the telephone, is far cheaper than direct contact or having a branch network. More and more business is done by phone, fax, e-mail and the internet. 
Call centre growth is driven by lower transaction costs and is supported by ever increasing developments in technology, such as interactive voice recognition (IVR) and internet based transactions (such as e-commerce). 
The call centre industry is one of the fastest growing in the world, increasing globally every year by 40%. In England more people work in the call centre industry than in coal, steel and vehicle production put together. A 1998 study found that further growth was imminent with nearly 80% of top US and European corporations declaring their intention to establish or increase their Asia Pacific call centre presence. 
Australian growth forecasts estimate a growth rate of around of 20-25% annually. In 1999, Australian businesses conducted two-thirds of commercial transactions over the telephone; this figure is expected to rise to 75% within two years. 
A 1998 survey found that 30% of Australian call centres intended to expand their existing facilities and 10% planned to open an additional call centre in the near future. It is estimated that $1.34 billion will be invested over the next two years. The total market by 2001 is estimated to be worth a massive $3.4 billion. 
Jobs For The Future 
Industry experts predict that 8700 new jobs will be created within the next two years and some predictions set the rate of growth to top at 300,000 jobs in the next ten years. 
The rapid rate of growth of call centres has generated significant growth in support services to the industry including: 
•	technology 
•	system support 
•	training 
•	recruitment 
•	professional associations 
There is debate over how the nature of call centre jobs will change. With developments in technology such as Interactive Voice Recognition (IVR) and e-commerce, some predict a decline in the number of Customer Service Representative (CSR) positions. This is likely to occur in tandem with the growth of more sophisticated CSR positions which integrate several technological and service skills. Further research is needed to define the impact of technology on the sector, particularly the use of the IVR and e-commerce. 
Best Practice call centres are moving toward Enterprise Relationship Management (ERM) which enables all employees across the business to access and manipulate the central customer database. A company can then offer a total customer service point at the same time as maximising the 'efficiency' of its operations. 
There will be an increase in the use of electronic processing such as internet-based e-commerce at the expense of telephone-based work. However, this needs to be balanced against overseas experiences of a continued demand for telephone-based service as a total service package to consumers, at least in the medium to short term. 
Keeping pace with change 
The clear need here is for a greater focus on skills development, training and career path options. The ACTU Call Centre Unions Group is seeking commitments from call centres, industry representatives and governments to develop the skills of existing call centre employees so they keep pace with technological advancements. Such commitments will guarantee Australian call centres a quality reputation for investment in the industry. 
Investing In Our Communities 
Regional Growth 
A 1999 study found that 42% of call centres were in Sydney and 28% in Melbourne. Over 80% operated call centres in major metropolitan locations, 11.5% in regional centres and 8% in both. 
There is a growing number of call centres being set up in regional locations such as Launceston, Wollongong, Newcastle, Gosford, Broken Hill, and Bendigo. In the 1999 study, 9% of metropolitan call centre operators were considering expanding into the country, creating an estimated 9,000 jobs. 
The attractions are strong. Real estate is cheaper, staff have a strong work ethic and high local unemployment reduces the turnover of staff. There is also a perceived shortage of staff in Sydney and Melbourne. 
One of the key factors in determining the potential of a location is the client/customer base and the skills set of potential staff. If the call centre is servicing a complex customer base and requires relatively highly skilled IT functions, it will require a workforce with specialised skills. 
State Governments and regional centres have invested substantial amounts into attracting call centres. It is imperative that the skills of staff in regional call centres are developed in order for these opportunities to remain in the long-term. 
Incentives 
Australian governments spend substantial amounts of tax revenue to attract companies to set up call centres, particularly in regional centres with high unemployment. Attraction incentives include: 
•	Reduced tax requirements 
•	Reduced or free rent of government-owned buildings 
•	Reduced costs for set up of technology infrastructure 
•	It is estimated that local and state governments will spend an average of at least $300,000 to attract a standard sized call centre to their state. 
There are little or no requirements expected of the companies that receive such investment incentives. The ACTU Call Centre Unions Group believes that the investment made by taxpayers should be returned to the community by way of quality customer service, long-term skilled employment opportunities, appropriate employment standards and ongoing training and skills development for employees. 
An Industry Standard 
The ACTU Call Centre Unions Group is seeking commitments to a Call Centre Charter, which will contain statements of commitment by call centres to: 
•	Train and develop staff, particularly in e-commerce 
•	Genuinely pursue excellence in customer service 
•	Apply appropriate minimum employment standards 
•	Adequately support staff in the provision of quality customer service. 
•	Similarly, we are seeking local, state and federal government commitments to: 
•	Where possible, encourage new centres to commit to the Call Centre Charter 
•	Give priority to call centres that have signed the Charter when awarding Government business to call centres 
•	Commit government call centres to the Call Centre Charter. 
Choosing Our Path 
Competition 
Australian call centre operations are seen as merely one choice of many in the Asia-Pacific region for global companies. This has significant implications for maintaining wages and conditions for Australian employees, although our wages are lower than most countries that offer similar standards of infrastructure, political stability and a multi-lingual workforce. 

Country			Average Salary PA 1998 (US$)
Tokyo					$ 32
Taiwan					$ 28
US					$ 26
Hong Kong				$ 24
Singapore				$ 22
Ireland					$ 20
UK					$ 19
Australia				$ 17
NZ					$ 15

The ACTU Call Centre Unions Group believes that the competitive advantage of Australian call centres should be the skill of their staff and professionalism of their operations. This is both advantageous to call centre employees who: 
•	Gain job satisfaction from providing good service 
•	Receive adequate training and career development 
•	Work in an industry with a meaningful career path. 
The advantages to the call centre industry are: 
•	Reputation as providers of reliable and quality service 
•	Access to a pool of well-trained and professional employees 
•	Retention of experienced employees due to reduced staff turnover 
•	Quality customer service 
•	Long-term, well-paid, skilled employment opportunities. 
The ACTU Call Centre Unions Group believes the key to achieving these goals are: 
•	Increased training and development 
•	Commitment to support staff to provide quality customer service 
•	A reduction in staff turnover 
•	The development of appropriate minimum wages and conditions regulation in the industry 
•	Increased participation of staff in key decisions regarding improvements to the provision of customer service. 
Features Of A Call Centre 
The table below outlines the variety of functions for which call centres are utilised: 

General customer service			59.8%
Inbound sales					13.9%
Reservations / ticketing / bookings		10%Technical queries				  7%Outbound sales				  3%Credit card / financial authorisations		  3%Debt collection				  0.7%Personnel / vehicle dispatch			  0.2%
Most industries now have call centres 

Industry			As a portion of call centre operations

Finance & Insurance				33.5%
Transport, Airlines & Storage			15.7%
Communication Services			11.5%
Manufacturing					10.4%
Electricity, Gas & Water			9.2%
Wholesale, Retail Trades			7.9%
Property & Business Services			4.2%
Government Administration			3.9%
Cultural, Recreation &
Accommodation Services			3.7%

Inbound and outbound 
In-house call centres usually directly employ staff in a specific section to service customers. The majority of call centres are in-house operations. 
The other differentiation is between inbound call centres and outbound or telemarketing call centres. Although there is specialisation, there is an increase in the number of call centres doing both inbound and outbound calls. 
Follow-the-sun 
Call centres most often service a national audience and sometimes do international work. It is estimated that two-thirds of call centres cover multi-state or national geographic areas. Seventeen percent of call centres also service international traffic, with other centres established globally in a 
'follow the sun' framework. 
Contract 
Contract call centres perform outsourced work for companies in a variety of ways: on a permanent basis, a specific campaign or function basis, an overflow basis or to provide support to in-house work. Some in-house centres also contract in certain functions. 
A Need For Regulation 
Wages and Conditions 
The average wages and conditions of contract call centres are generally lower than those of in-house call centres. Contract centres are largely unregulated and are a major force in driving down wages and conditions established in the in-house sector. 
The ACTU Call Centre Unions Group believes this deregulation results in significant discrepancies in wages and conditions in the industry. 
Customer Service 
One of the determining factors in assessing the cost benefit attraction of outsourcing is the fact that many industries use the call centre as the entry point into their organisation. They therefore require staff with substantial company knowledge and identification. 
In addition, the development of enterprise relationship management, which will provide consumers with a higher quality service, is more likely to occur in in-house call centres. 
Inside The Call Centre 
Size 
Typically, call centres employ between 20 and 200 Customer Service Representatives (commonly called CSRs or agents). The CSR's computer is connected to a local area network integrated with the telephone system. 
Hallis estimates that call centres employ an average of 87 staff, with over 50% having more than 26 staff. Smaller call centres average around 14 staff. The ACA survey notes that 20% of call centre employees work in centres equipped for less than 10 people, while 10% of employees work in call centres equipped for more than 100 employees. 
Most call centres operate on a team basis. The 1997 TARP study identified an average ratio of 14 staff to a supervisor and five supervisors to a manager. 
Calls are automatically channelled to the employee from a queue. The calls may come in to the centre from a local, national or even international queue where they are banked and passed on to the CSR by automatic call distribution software. In some of the more modern centres this software recognises customers and matches them with an employee who is skilled to deal with their call. Most call centres have human resource management systems that manage and monitor the workflows of staff, and measure the type, length and duration of calls. 
According to the TARP study in 1997, 30% of Australian call centres operated seven days a week. Nine per cent operated 24 hours per day. 
Faces Behind the Voice 
The majority of call centre workers are women. The average age is 23 and more than half the workforce is under 34. 
Around sixty per cent of employees in call centres have high school qualifications, 30% have tertiary qualifications. 
The average length of service for a call centre in the current job is two and a half years. 
ACA estimates that 68% of call centre employees work full-time, 7.8% permanent part-time, and 12% are casual or temporary. Almost half work a five-day week between seven to nine hours a day. 
Spans of hours appear to be increasing with weekend work and around-the-clock shifts becoming 'part of the job'. Related issues include: 
•	safe transport home 
•	compensation for out of normal hours work 
•	family friendly work policies 
•	non-discriminatory work policies arising from these developments. 
Technology
E-commerce 
The majority of call centres are at least partially automated. The trend is toward increased automation, particularly the use of IVR, e-mail and internet. It is estimated that it will take at least five years for this trend to impact on the structure and functions of the call centre, at which point the use of telephones will plateau and be overtaken by e-mail and internet services. 
While it appears that the impact of e-commerce will mean a reduction of telephone-based jobs, it will also open up opportunities for higher skilled jobs elsewhere. In Germany, a study revealed that customers who use e-commerce also demanded access to the traditional phone service. This study predicted a 
'transition period' which will last at least a few years. 
Integrated Customer Service 
Two distinct trends seem to be developing: 
Companies converting their customer service centres, traditionally seen as cost centres, into profit centres. This is achieved by shifting the focus from customer service to integrating service and marketing. 
Call centre operations utilising their capital investments by merging and integrating e-commerce and traditional mail house/facsimile functions to convert first and second generation call centres into total centres. 
Consumer Feedback 
The use of IVR or Voice Response Units (VRU) is increasingly common. Customers are provided with a menu when they call in - the technology often causes more difficulties for staff as customers dislike it, or the system is not compatible with old-fashioned phones. Customers are often frustrated with the time they spend in queues. The key seems to be that consumers want to choose between personal customer service and automated service. There are also privacy issues for both staff and customers when calls are recorded. 
There is evidence that some key call centres are trialing further use of IVR in their customer service programmes where customers speak to a fully 
'interactive voice' which responds to their queries/requests in a human-like 
manner. This will have a significant impact on customer satisfaction. 
A Plan For The Future 
The ACTU Call Centre Unions Group believes the key factors for a long-term sustainable call centre industry are: 
•	Increased training and development 
•	A genuine commitment to support staff to provide quality customer service rather than sheer quantity of calls answered in the shortest time possible 
•	A reduction in the rate of staff turnover 
•	The development of appropriate minimum wages and conditions regulation 
•	Increased staff participation in key decisions about customer service 
•	A commitment to excellent customer service standards. 
The ACTU Call Centre Unions Group believes the following major issues need to be addressed in order to achieve the goals outlined above. 
Staff Turnover 
The average turnover estimated by the latest Hallis Survey is 23.7% - 29.5% per annum. 
The TARP study estimates that Australia and New Zealand have higher turnover rates than most other countries. Australian turnover rates compare poorly with best practice attrition rates for US call centres. 
Staff turnover costs call centres over $11,500 per staff member, and over 60% of operating costs are labour. 
The ACA study found that 40% of employees had been in their current role for less than one year, but that one-third of employees surveyed had been working in a similar call centre role for more than four years. This indicates that there is a high degree of intra-industry movement. 
ACTU research found that the primary reasons for turnover were: 
•	Stress and pressure of targets contradictory to providing quality customer service 
•	Lack of flexibility in work organisation to enable meaningful customer relationships 
•	Lack of diversity in work content 
•	Inadequate technological and informational resources to provide holistic customer service 
•	Inadequate training 
•	Lack of career path 
•	Inadequate support from management to place customer service as a priority. 
The 1999 Hallis Staff Turnover Report found that the top three reasons staff left a call centre were: (1) limited promotion opportunities, (2) inadequate pay and (3) bad management practices and excessive monitoring. 
Most reports now note that people are the key to call centre success or failure. CCR notes "access to [people], retention and loyalty are the most important issue facing managers today". High turnover rates result in larger numbers of inexperienced and untrained staff, which affects customer service standards. 
Experienced employees who are burdened with inefficient new team members face intense pressure and reduced job satisfaction. Call centre operators stay in their jobs if the call centre: 
•	Is committed to quality customer service 
•	Supports staff to provide high-quality service 
•	Trains staff 
•	Rewards employees with appropriate salaries and conditions 
•	Provides an acceptable work environment. 
The Cost of Stress 
The ACA Call Centre Agent Report found that high stress call centres had an average staff turnover rate of 36% - almost double the industry average. The study attributes $100 million to staff turnover. Stress-related absenteeism costs $150 per employee per year, adding up to an annual cost of $7.5 million. 
Sources of stress include: 
•	A focus on quantity rather than quality of customer service 
•	Abusive customers 
•	Call monitoring/ recording particularly where used punitively 
•	Inadequate equipment and equipment failure 
•	Unsupportive management 
Solutions to Stress 
In a recent study of 658 call centre employees, the Australian Services Union reported that the key solutions to the high incidence of stress put forward by employees included: 
•	Listening to employees' suggestions 
•	Decreasing the emphasis on statistics which focus on quantity not quality 
•	Improving management's attitude 
•	More training and support. 
The most significant source of stress is the inherent contradiction between the pressure to meet strict quantity based statistical requirements and wanting to provide quality customer service. This is of integral importance since most employees report that the major source of their job satisfaction is from providing quality customer service. In some call centres, the time allowed per call makes this impossible. Some call centre staff have reported that in a deliberate 'finding the bottom line' exercise, time limits are reduced until customers complain and only then will the centre raise them. This enables the call centre to provide customer service levels that are just above customer complaint levels. Customer waiting queues are often displayed, creating additional stress for staff. 
Rest breaks 
Some call centres have adopted the practice of providing staff with five-minute breaks each hour. This does not necessarily mean they are not working - but they have their headsets switched off and are preferably not working on their VDU. The ACTU Call Centre Unions Group supports the adoption of this practice as part of the Corporate Call Centre Charter. Some call centres do not allow staff even a one-second break before the next call is fed through to them. 
Most call centres provide some rest breaks for staff in addition to a lunch break. However, many do not provide for toilet breaks outside these designated times. The ACTU Call Centre Unions Group seeks to eradicate this practice, as it is degrading and discriminatory against women. 
Monitoring 
For most staff, electronic performance monitoring is unpleasant, but it appears to be of greater concern when it is attached to narrow performance-based criteria required for pay increases, or when monitoring is used excessively or abused by management. When this occurs, monitoring is a significant source of stress and is often seen as undermining employees' self-respect. 
It is a widely held perception that call centre performance measurement is heavily weighted towards productivity measures rather than an emphasis on quality. Many Australian call centres do not monitor customer satisfaction. This suggests that there is a large deficit in the ability of call centres to meet standards which will be expected from an industry ever increasing in its ability to conduct sophisticated total customer service functions. 
Career And Training Opportunities 
Where to From Here? 
A lack of career path is a major issue for call centre employees as there is an obvious bottleneck at the team leader level. At the same time, little lateral movement opportunities exist in many centres. As call centres shift toward internet and e-mail facilities, further opportunities for career paths may open up. 
Some in-house call centres enable promotion outside the call centre structure. ACA notes: "Those agents who expressed the most optimism for promotion potential tend to be those who are still fairly new in their current position, and, based on our experience, possibly relieved to be employed from a pool of young job seekers". The research suggests that at around the two-year mark, the confidence in career prospects begins to wane (this is coincidentally the average length of time before an employee leaves the call centre). The survey suggests many employees feel call centres may assist them to catch the "technology wave" in the employment market. This again highlights the need for ongoing training and development. 
Training 
ACA notes that most call centre staff receive around ten days of in-house training each year. Lack of quality training is one of the key issues reported by call centre staff. In particular, given the short tenure of staff in any one centre, a commitment to training in portable skills is warranted. 
In light of the technological advancements predicted, the ACTU Call Centre Unions Group will be calling on employers to provide adequate training in e-commerce applications to ensure the ongoing development opportunities of call centre employees. 
Job design 
Some call centres utilise the notion of multi-skilling and promotion within the call centres. Multi-skilling through job rotation is a popular suggestion of call centre employees. A more flexible approach to the work of customer service representatives provides variety and job satisfaction, and better customer service if issues can be followed up in one call. 
Providing Quality Customer Service 
Inadequate staffing levels are largely responsible for long queues and result from: 
•	Insufficient rostering procedures 
•	Inappropriate forecasting 
•	Lack of staff due to high turnover or absences 
•	Inappropriate cost saving measures. 
ACA research has found that for the typical employee, 5-10% of calls they take are from angry or irrational customers - so, customers are one of the major sources of stress. The most common sources of customer anger are: 
•	Waiting in queues 
•	Not being able to resolve their issue in the one call. 
The ACTU Call Centre Unions Group believes adequate staffing levels and job design would alleviate customer anger. 
Management Support 
Managers seem to be appointed on the basis of technical experience rather than leadership capability. A lack of training in management skills compounds this problem, which most call centre management are reluctant to address. The study commissioned by the Australian Services Union (ASU) found that significant stress resulted from non-supportive management. Factors ranged from: 
•	Excessive monitoring (including time spent going to the toilet) 
•	Management distrust and demands for justification of actions and decisions 
•	Harassment about call times from management 
•	Lack of adequate communication. 
In the Workplace 
The ASU study found that 41% of respondents rated their workplace as uncomfortable - 38.6% had suffered an injury as a result of working in the call centre. The main reasons for discomfort included: 
•	Work stations too close 
•	Noise levels too high 
•	Inadequate air conditioning 
•	Inadequate lighting 
•	Inadequate amenities such as kitchen / bathroom 
•	Need for proper chairs and headsets 
•	Lack of management support. 
The ASU study revealed that a common source of stress for call centre staff was the inadequacy of the technological support. The key factors were: 
•	Slow computers 
•	Frequent down times 
•	Inadequate data bases 
•	Having to juggle non-integrated systems to gain basic information 
•	Inadequate planning and communication resulting in the call centre being unprepared for campaigns launched by the company. 
This, coupled with angry customers impatient from already waiting in a queue led 47.6% of respondents to say that inadequate technology was a major source of stress. 
On The Move 
As ACA notes, "it would appear that movement between call centres is reasonably common for agents". The high turnover rates raise important questions about industrial regulation of employment arrangements. Employee turnover and length of time impacts on benefits such as long service leave and superannuation arrangements. 
The short-tenure period highlights the importance of portability of skills and competency accreditation. Employers must commit to quality training and employee development as part of their employment contract. 
Australia has one of the highest rates of casualisation in the OECD. The call centre industry is a highly casualised workforce with most casuals employed through employment agencies. Some contract call centres employ over 75% of their staff as casuals. While a significant number of people choose to work as casuals, many hope for a more permanent and secure position. 
The impacts of casualisation on employees, the industry and consumers include: 
•	Lack of employment security 
•	Casual staff employed through employment agencies are often on different rates of pay and conditions to permanent staff, causing divisions among staff 
•	Casuals have little protection from unscrupulous employers 
•	Permanent staff provide knowledgable and experienced service to customers 
•	Permanent staff are able to maintain meaningful long-term customer relations. 
Rates Of Pay 
The Hallis report suggests that most managers who responded to the survey relied on market rates to set remuneration. 
A significant component of salaries is "at-risk" performance-based pay. The Hallis study found that 72% of call centres paid non-cash bonuses, including shares and gymnasium membership. Incentives are linked to key performance indicators. 
Salary variations depend on a call centre's provision of compensation for work outside normal hours. There is a trend for call centres to create an overall wage package, which includes projected annual penalty rates. It is important that these calculations are transparent and flexible so employees are paid appropriately for out-of-normal hours work. 
Where there have been wage increases in some call centres, there have also been dramatic decreases as a result of the effects of contracting out on the wages and conditions of call centre workers. 
In many areas, wages are significantly better than those listed in these surveys. Most importantly, the actual base wage is of little significance without looking at the overall wage package, in particular the application of penalty rates. Call centre employees are usually paid below the standard wages and conditions attached to the industry in which they work. This is especially noticeable where the call centre is connected to industries which traditionally provide generous non-salary benefits such as travel or banking discounts. 
Industrial Relations 
Award Coverage 
There are minimum rate awards that apply in most states, which allow a very poor base for unscrupulous employers to apply no disadvantage tests required for individual contracts. The ACTU Call Centre Unions Group sees a need for a modern award that provides decent minimum wages and conditions for employees who are not covered by an appropriate award or enterprise agreement. 
A significant number of call centres committed to appropriate remuneration and staff development will welcome the regulation that an award would provide. The ACTU Call Centre Unions Group is committed to taking wages and staff development out of the competition for business in order to support such call centres. 
Transmission of Business 
Recent transmission of business cases have created doubt now as to the validity of many contracting out arrangements. The ACTU Call Centre Unions Group believes that where a company outsources a business of a substantially similar type to that being carried out under an existing contract, then the pre-existing employment conditions should prevail. 
Union Presence 
Forty per cent of the employer respondents to the Price Waterhouse survey employed staff who were members of unions. The ACTU Call Centre Unions Group will focus on building their membership in this industry. In particular, unionising contract call centres will help to establish an adequate minimum standard for the whole industry. 
Statistical data indicates that unionised workplaces receive higher average wages than their non-unionised counterparts. While the ACTU Call Centre Unions Group recognises the importance of protecting wages, particularly in contract call centres, it believes that securing commitment to training and development will be a top priority in the coming years. Only with a strong and vital membership will call centre unions assist in building the industry to its potential. 
Simon Kriss of the CCMA says unions need to be pro-active as "there are a number of call centres operations that are well below standard". Kriss estimates 5-7% of call centres fall below an acceptable minimum standard. 
There is evidence that some call centre employers actively discourage union membership, particularly those who wish to minimise wages. The ACTU Call Centre Unions Group believes that freedom of association is a key issue, particularly in light of the relative youth of many call centre employees and the additional vulnerability of the substantial number of casual or temporary employees. 
Rewarding Call Centres 
Lighthouse Call Centres 
The ACTU Call Centre Unions Group has endorsed a program of positively supporting call centres that are committed to the welfare and development of their staff. The Unions Group will lobby government to provide substantial investment attraction incentives to those call centres that will return this investment to the community by way of decent job opportunities. 
The group will also lobby governments, when outsourcing work, to do so to call centres that are genuinely committed to providing quality jobs and customer service. Strategic alliances will be created with organisations associated to the industry such as training institutions, labour hire firms, consultants and employment agencies which promote a regulated and well-respected industry. In addition, information about call centre salaries and conditions provided through the ACTU Unions Group will enable potential employees to make informed choices about their employment options in the industry. 
Call Centre Charter 
The ACTU Call Centre Unions Group have developed a Call Centre Charter. This Charter encompasses minimum standards for the industry, developed in consultation with employers and other key players. It will be based on realistic salaries and conditions which most call centres currently provide. 
The Charter will aim to distinguish between the majority of call centres which are committed to the well-being of their staff and customer service from the minority that are not. Signatories to the Charter will be held up and supported by the ACTU Call Centre Unions - with the ultimate aim of establishing a decent minimum standard and regulating the industry in a way that will allow professional, long-term growth. 
Conclusion And Recommendations 
The ACTU Call Centre Unions Group believes that the Australian call centre industry is well placed to achieve the commitments to quality that are required to position Australian centres as a natural choice for: 
1. Long-term customer relationship contracts in the Asia region 
2. The development of the industry in e-commerce relationships. 
Whilst a significant number of call centres are committed to the principles outlined in the Call Centre Charter, it is important that the whole industry meets these minimum standards. In order to achieve these goals, the Call Centre Unions Group recommends that. 
•	Call Centres sign the Call Centre Charter 
•	Call Centres meet the Minimum Standards Code 
•	Governments support call centres who meet the code 
•	Governments and Call Centre Associations support the directions for the industry outlined in this paper. 
These recommendations are based on extensive consultation with key industry players. Primary consultation was made with employees who provided advice and feedback as to how they could provide better customer service and add value to the industry. 
Sources Of Data 
ACA Research, Call Centre Agent Study: Call Centre Hang-ups, July 1998 
ACA and Price Waterhouse Report, The Australian Call Centre Management Study, October 1997 
Australian Financial Review, Special Call Centre Report June 27-28 1998 
Australian Financial Review, Call Centre Report September 2000 
Australian Services Union (ASU), Stress Survey Report: Can Call Centres be Better Places to Work? 2000 
Baragwanath,C. and Howe,J., Corporate Welfare: Public Accountability of Industry Assistance, Centre for Employment and Labour Relations Law, University of Melbourne, October 2000 
Call Centre Research ("CCR"), The Australian Call Centre Location Report, March 1999 
e-Access Magazine April / May 1999 
Fernie, S.,'The New Industrial Tyranny: Hanging on the Telephone' in Magazine of Economic Performance 3 (1) 1998 
Hallis Call Centre Staff Salary Survey, 1998 
Hallis Call Centre Staff Salary Survey, 1999 
Hallis Contact Centre Salary Survey, 2000-2001 
Hallis Call Centre Staff Turnover and Benchmarking Survey, 1999-2000 
Hampe, F., Paper delivered for RMIT February 2000 
TARP, Customer Care Call Centres, May 1997 
Trade New Zealand, 'Invest in New Zealand' January 1999 
URCOT, RMIT & the Victorian Trades Hall Council, Call Centres- What Kind of Future Workplaces? July 2000 
Special Thanks to John Lund of Michigan University.