TelstraClear is considering cutting 120 call centre jobs in New Zealand and sending the work to the Philippines.
The telecommunications company says it is looking at a proposal that would result in the loss of 70 jobs from its call centre in Christchurch and 50 jobs from its centre in Paraparaumu, on the Kapiti Coast.
TelstraClear says the work would be given to an international provider in Manila by the end of the year if it goes ahead with the plan.
The Engineering, Printing and Manufacturing union says the move would be "business suicide" as New Zealand customers do not like companies sending work offshore.
Union spokesperson John Kerr customers will be reminded of their annoyance every time they call TelstraClear.
The union says New Zealand is a much easier place to do business than the Philippines.
But the TelstraClear says a trial over the past five months has shown workers in Manila can do the work well, and the change could make it more competitive in what it calls a challenging environment.
Consumer New Zealand says moving call centre work to other countries has not worked well in the past, but has proved much more successful in recent years.
Kapiti district mayor Jenny Rowan, says the 50 job losses from the Paraparaumu call centre will be a major blow for the area, which already has high unemployment.
Vodafone offer raises prospect of regulation
Meanwhile, Vodafone may have jeopardized its bid to avoid price regulation by offering an ultra-cheap mobile calling offer to its prepay customers.
The company has launched a plan offering prepay customers calls at 6 cents a minute to other Vodafone mobiles and landlines, but 89c for calls to other networks.
New mobile competitor 2Degrees says the offer is anti-competitive because those on the plan will pay 15 times more to call those on a competitors' mobile networks.
2Degrees chief commercial officer Bill McCabe says Vodafone's plan makes it harder for his company to compete and regulation is the only way to ensure competition.
The Commerce Commission had previously recommended that Communications Minister Steven Joyce should not regulate prices in the industry.
But the commission now says the Vodafone plan may be relevant to the decision.
The Telecommunications Users Association says Vodafone's plan has reopened the whole question of regulation.
Vodafone says it hopes to discuss the matter with Mr Joyce and the commission as soon as possible.
Telecom is urging Mr Joyce not to delay his decision on mobile termination rates because of the Vodafone matter.
