Seventy field technicians sacked by telecommunications giant Optus and asked to re-apply for jobs as independent contractors on lower wages and conditions is a sign that big business is starting to take advantage of the Howard Govt's new IR laws says the ACTU.

After meeting with sacked Optus workers at a union office in Melbourne today, ACTU President Sharan Burrow said:

"The new IR laws will help big businesses like Optus but they are already starting to hurt ordinary working families.

Seventy Optus technicians have received letters of termination and will be offered a free seminar on how to write a CV and apply for jobs as independent contractors with Optus. Thirty of the technicians are from Melbourne, twenty from Sydney, seven from Brisbane and the remainder are from Adelaide, Perth and other locations.

The Optus workers are currently employed as permanent full time workers on average earnings of around $45,000 a year. Some of them have been with the company for nine years and many have families to support.

Optus has indicated that they will be re-engaged but only as independent contractors. The workers have been told they must obtain an ABN number and purchase an Optus van.

As contractors, the ACTU understands the workers will be required to pay their own superannuation, workers compensation, public liability insurance and cover the costs of a van, all materials and equipment.

The workers will also lose entitlements to paid sick leave, public holidays and annual leave.

At the same time, the workers will be under pressure to meet performance targets and are concerned that health and safety standards will be compromised - such as working on two storey house without safety harnesses - by the financial pressure of working as contractors.

"The Optus sackings are a test of the new IR laws and the ability of big businesses to sack their workforce on the basis of 'operational reasons'."