Sensis denies offshore tendering for Telstra directories

Stephen Ronchi, external communications manager for Sensis, confirms his company has been in discussion with local print provider PMP over the past six months about increasing the efficiency of its directory printing operations. As reported last week, PMP will close one of its directory plants in Sydney or Melbourne, a move unions claim was driven by Sensis demanding the company match Chinese print prices.

“We have looked at a range of ways to improve efficiency and lower the cost of production, and the closing of one of the directory plants is one of the outcomes that was discussed,” says Ronchi.

“Sensis has some very aggressive growth targets going forward as part of the broader Telstra picture. We haved looked at a range of ways that these can be achieved,” he says. “PMP is our first point of call, and if we feel the need to change our operations then we discuss it with them.”

PMP is responsible for printing the entire directory catalogue of Sensis across its two sites in Sydney and Melbourne, and has confirmed its plans to shift production over to a single site. This will lead to the closure of the other directories plant, resulting in approximately 100 job losses according to union estimates.

However, Sensis rejects union allegations that it threatened to suspend its contract if the company was not able to match the prices of its Chinese competitors. It denies the impending plant closure is explicitly linked to offshore print.

“I would not agree that anything like that has ever happened,” Ronchi claims. “We sat down with PMP and stated our objectives, but it was certainly never anything like an 'us or them' situation. Any decisions made on how it structures its operations are purely the responsibility of PMP,” he said.

“When it comes to the production of our directories portfolio, PMP is the only party that we have been talking to, and Sensis is committed to our relationship with the company,” claims Ronchi.

However, he confirmed Sensis would continue to explore all other options available to it.

“Printing is a very competitive industry, and there is scope for businesses to look outside on a global scale,” says Ronchi.

“We are keeping our eye on the ball. Obviously offshore print is an option open to any business, and we recognise it as one of a range of options. It is always a matter of assessing how things can be done better.”

The print union (AMWU) maintains that Chinese print prices are a factor in the decision of PMP to close down one of its directory plants.

“Unfortunately it has become fashionable to mislead employees and the public, perhaps less so the market,” said Mark West, assistant secretary for the printing division at AMWU. “Our position is that we will keep fighting for jobs in the Australian printing industry that attract and retain decent pay and conditions.”