Telus 2008 Annual Report Download - page 18

TELUS’ wireless operations employed approximately 4,030 unionized employees in two
separate bargaining units, with the majority of them being clerical and technical
employees across Canada in the TWU’s national bargaining unit and a small number of
professional and supervisory employees represented by the SAMT in Québec under a
collective agreement that expired on March 31, 2007 and is being renegotiated in the
first quarter of 2009.
Collective bargaining
Renewal negotiations for the collective agreement with the SAMT in the wireless
segment commenced in 2008 and continue into 2009. The terms of the expired
agreement will continue to apply until a new collective agreement is ratified. (See
“Management’s Discussion and Analysis – Section 10. Risks and risk management –
10.4 Human Resources” in TELUS’ 2008 Annual Report – Financial Review).
CAPITAL ASSETS AND GOODWILL
As at December 31, 2008, the total investment of TELUS in capital assets and goodwill
was recorded at a net book value of $16.0 billion on a consolidated basis. Goodwill,
which represents the excess of cost of acquired businesses over the fair value attributed
to the net identifiable assets, had a net book value of $3.6 billion.
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, 2008, the total investment of TELUS in capital assets was
recorded at a net book value of $12.5 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 $3.8 billion as at December 31, 2008,
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 real properties of TELUS include: (i) office space and related parking facilities; (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.
TELUS monitors its operations for compliance with applicable environmental
requirements and standards, and implements preventative and remedial actions as
required. TELUS’ business of telecommunications services does not generate
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