DXC Australia staff to strike over long-running pay dispute • The Register

DXC Technology employees in Australia will go on strike this week after 14 months of negotiations over a new pay agreement failed, potentially disrupting IT services for major banks and government agencies that outsource work to the company.

The union representing the workers, Professionals Australia (PA), told The Register that "many DXC employees have not received a pay rise in five years" while the cost of living in Australia has increased "by more than twenty-four per cent" over that period. The strike action is particularly significant because Australian banks and government agencies outsource IT work to DXC, meaning the industrial action could impact essential public services.

A DXC spokesperson provided the following statement to The Register: "We respect the right of our employees to participate in protected industrial action. We continue to bargain in good faith and look forward to finalising the new agreement."

The industrial dispute highlights growing tensions in the IT services sector as workers face stagnant wages amid rising living costs. DXC operates across multiple sectors in Australia, including financial services, government, and healthcare, making the potential impact of the strike widespread.

This industrial action comes amid broader economic concerns affecting the Asia-Pacific region. Forrester analyst Frederic Giron has warned that the war in Iran may slow IT spending across APAC, with tech spending in the region forecast to grow 9.3 percent in 2026 but potentially impacted by energy price fluctuations and component shortages.

Giron noted that "in Australia, software inflation is running at nearly four times the general consumer price index," while hardware prices are increasing due to tariffs and component shortages. The analyst warned that if disruption from the Iran conflict persists beyond Q2 2026, GDP compression across energy-importing APAC markets will tighten IT budgets.

Meanwhile, other developments in the region include Japanese giants Toshiba, Mitsubishi, and ROHM beginning talks to combine their semiconductor businesses to compete in the global market. The companies believe collaboration could "realize a business scale and technological foundation capable of competing in the global market."

In technology infrastructure news, Japan's NTT has detailed work with Japan's National Institutes for Quantum Science and Technology to deliver fast, frequent real-time communications essential for controlling plasma in fusion reactors. The research involves developing networks that allow high-frequency communication with a cycle time of less than 100 microseconds, enabling control of magnetic fields inside fusion reactors to sustain operations without disruption.

The DXC strike represents a significant moment for the IT services industry in Australia, as workers push back against what they see as inadequate compensation in the face of rising living costs. The outcome could have implications for other companies in the sector and potentially influence broader labor relations in the technology industry.