Australian Federal Court Ruling in favour of Stellar, the outsourcing call centre group.

By Niels Kjellerup, Editor Thursday 22'nd of February 01.

The Stellar Call Centre Group, formed as joint venture between Telstra & Excell Global in 1996, won the court action brought against it by the union representing Telstra call centre staff insisting that the same rules and awards should apply to work carried out by Stellar for Telstra. (if this is inaccurate, please correct me if I'm wrong). It was a unanimous decision by the full Bench of the Federal Court.

This put to rest the uncertainty of the future role of Stellar in its bidding for contracts from Telstra, and now seems to open the way for a consolidation of the more than 250 Telstra Call Centres and subsequent outsourcing.

For your information please find enclosed the two releases received today from Stellar. Comments from the Unions involved will posted when received.

1) Federal Court decision on Outsourcing  &

2) Stellar welcomes Federal Court decision on Outsourcing.


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22 February 2001

 Federal Court Decision on Outsourcing 

 The Full Bench of the Federal Court yesterday ruled in favour of Stellar Call Centres in a decision that has a significant, positive implication in the contact centre industry.

 The ruling referred to Stellar not being bound by former Telstra awards when providing outsourced telecommunications services on behalf of Telstra.  Please refer to the attached Media Statement.

 The decision further reinforces the benefits that clients can derive from a relationship with Stellar.  We are at the leading edge of delivering first class solutions to the market, which will enable our clients to enhance customer service, increase sales performance and, at the same time, optimise operational costs.

 Our success is founded on the ability of understanding our clients’ needs and achieving and delivering aligned first class contact centre service solutions.

 We design, build, staff and manage call centres on behalf of our clients.  Alternatively, we will staff and manage the call centre in the client’s premises.  We become an extension of the client’s business via a professional, innovative strategic partnership approach. Stellar can provide a full range of teleservice activities, including inbound and outbound customer care and sales solutions.  We can undertake complete outsourcing of the client’s centre or we can be the benchmark centre via a partial outsourcing solution.  

 I will be communicating significant events as they arise, however in the meantime, if I can be of assistance to you, please do not hesitate to contact me via email or telephone (03) 9831 8902.

 Yours sincerely,

Frank Mash

General Manager Business Development

Stellar Call Centres Pty Ltd


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Media Statement " Stellar welcomes Federal Court decision on Outsourcing"

Stellar Call Centres today welcomed an important judgement by the Federal Court which will provide much greater certainty to the call centre industry.

 The Full Bench of the Federal Court today ruled that Stellar should not be bound by former Telstra awards when providing outsourced telecommunications services on behalf of Telstra.

 Stellar is a major Australian call centre operator with more than 1400 permanent employees nationwide.

 In a unanimous decision, the Full Bench of the Federal Court found that by handling calls on behalf of Telstra at Robina in Queensland,  Stellar was performing a support function and was not a part of Telstra’s business.

The court found… “the making of those (call) responses is not a distinct “part” of Telstra’s business….any more than, for example, cleaning undertaken as a necessary aspect of the conduct of a restaurant is “part” of the business of the restaurateur.”

Mr John Zisis, Director Employee Relations for Stellar Call Centres, said “This judgement delivers much greater certainty and clarity to our business.”

“In a practical sense it would have been impossible to be bound by old, inefficient Telstra awards when employees can perform services for a range of clients across industries including energy, transport, finance, logistics and E-commerce.”

“We have always strived to be a fair employer and this decision will allow us to continue to pay above average salaries, bonuses and provide excellent working conditions to our employees.”

Ultimately, this decision further enhances the positive outlook for the call centre industry.


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