Telus 2006 Annual Report Download - page 15

represents approximately 511 unionized employees in TELUS’ wireline operations in Quebec
under a collective agreement that will expire on March 31, 2007. TSS, which employs
approximately 125 unionized employees in the payroll and human resources services business,
is signatory to three separate collective agreements in the provinces of Alberta and BC.
TELUS – wireless business segment
TELUS’ wireless operations employed approximately 3,426 unionized employees in two
separate bargaining units with the majority of unionized employees (approximately 3,406 clerical
and technical employees across Canada) included in the TWU’s national bargaining unit and a
smaller number (approximately 20 professional and supervisory employees) represented by the
SAMT in Québec under a collective agreement that will expire on March 31, 2007.
Collective Bargaining in 2007
Renewal negotiations on the two collective agreements with the SAMT have commenced in
2007. The terms of these contracts will continue to apply until new collective agreements are put
in place. (See “Management’s Discussion and Analysis – Risks and Risk Management –
Section 10.4 Human Resources” in TELUS’ 2006 Annual Report – Financial Review).
CAPITAL ASSETS AND GOODWILL
As at December 31, 2006, the total investment of TELUS in capital assets and goodwill was
recorded at a net book value of $14.2 billion on a consolidated basis.
Capital assets and goodwill
The principal capital assets of TELUS consist of telecommunications property, plant and
equipment and intangible assets and do not lend themselves to description by exact location.
As at December 31, 2006, the total investment of TELUS in capital assets was recorded at a net
book value of $11.0 billion on a consolidated basis. Such assets, located principally in Alberta,
B.C., Ontario and Québec, include network facilities, relay and transmission towers, switching
equipment, terminal devices, computers, motor vehicles, tools and test equipment, furniture,
office equipment and intangible assets. Spectrum licences, which had a net book value of
$3.0 billion as at December 31, 2006, comprise the majority of identifiable intangible assets
included in capital assets.
With the exception of terminal devices located at customer premises, most of the Company’s
communications plant and equipment are located on land owned or leased, or on rights-of-way
obtained, by TELUS.
The properties of TELUS include: (i) office space; (ii) work centres for field service and
materials management personnel; and (iii) space for exchange, toll and mobile radio equipment.
A small number of buildings are constructed on leasehold land and the majority of the relay
stations for TELUS’ public service radio-telephone network are situated on lands held under
leases or licences for varying terms. The network facilities of TELUS are constructed under or
along streets or highways pursuant to rights-of-way granted by the owners of land including
municipalities and on land owned by the Crown or on freehold land owned by TELUS. Other
communications property, plant and equipment consist of plant under construction and materials
and supplies used for construction and repair purposes. Identifiable intangible assets include
wireless spectrum licences, subscriber base and computer software.
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