DXC Technology workers strike over pay dispute and underpayment claims

Tech workers at DXC Technology represented by the Professionals Australia and the Australian Services Union have begun rolling 24-hour strikes until May 12, alongside bans on standby duties, on-call work and overtime, as stated by Arnnet.

The industrial action follows more than 15 months of enterprise bargaining negotiations between DXC and unions representing around 200 technology professionals. The dispute involves software engineers, systems engineers, software developers, infrastructure specialists, database administrators, information security analysts and operational support staff. Unions say workers have not received a pay rise in five years despite rising living costs and strong company profits.

The strike action could disrupt critical IT systems supporting the Australian Electoral Commission and the Australian Taxation Office during a sensitive period. This includes support work linked to the Farrer by-election and major preparations underway at the ATO ahead of the Federal Budget. The dispute has also intensified concerns around labour practices after unions accused DXC of using contractors as strike breakers during protected industrial action.

In March, Professionals Australia said the industrial action would involve about 200 highly skilled workers. The unions also alleged that DXC admitted employees had been underpaid since at least 2017. 

According to the unions, the company had known about the issue since at least 2023 but only acted after unions threatened escalation through the Fair Work Commission. Workers say soaring living costs, which unions estimate have risen by more than 24%, have effectively resulted in a major real wage cut. DXC reported global profits of $389 million during the same period.

“Between 8 and 12 May, our members will be undertaking work stoppages to send a clear message: highly skilled tech workers who support our national infrastructure deserve a wage that reflects the value of their work,” said Ella Waters, assistant secretary - South Australia and Northern Territory, ASU. 

“It is unacceptable that while DXC reports global profits of $389 million, the workers delivering critical IT services for the ATO and major banks haven’t seen a pay rise in five years. “With the cost of living soaring by over 24 per cent, these professionals have effectively endured a massive real pay cut. We are fighting for guaranteed wage increases to ensure our members aren’t being punished for their dedication while the company’s bottom line thrives.”

Paul Inglis, director, pofessionals Australia said, “Unions were also concerned about the company’s handling of employee underpayments and alleged attempts to undermine lawful industrial action.

“DXC’s attempts to hide underpayments to their staff, which they’ve been aware of since 2023 is both disgraceful and unacceptable,” 

Inglis added, “But what is even more disturbing is the company’s attempt to bring in strike breakers to undermine its own employees as they exercise their lawful right to take industrial action over those very issues.

“These are highly skilled technology professionals responsible for maintaining critical government and banking systems, yet many have gone five years without a pay rise while the cost of living has skyrocketed.”

Inglis added that workers had spent more than 14 months bargaining in good faith through fortnightly meetings, but claimed the company’s proposals would reduce conditions and potentially leave some employees significantly worse off financially.

The unions have also written to ministers overseeing federal and state government contracts with DXC, questioning whether the company’s conduct breaches the Commonwealth Supplier Code of Conduct, which requires suppliers to provide lawful entitlements including wages, overtime, superannuation and leave.

The dispute is expected to place further pressure on negotiations in the coming days as unions push DXC to return to the bargaining table with a revised wage offer and improved employment conditions.