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Fair Work extends ‘zombie agreements’ for DXC employees

Fair Work extends ‘zombie agreements’ for DXC employees

Covers pre-2010 agreements that continue to operate.

Credit: DXC

The Fair Work Commission (FWC) has extended collective-based agreements for DXC Technology Australia employees by three years. 

Known as 'zombie agreements', these employee working conditions were made before 1 January 2010 and continued to operate under the Fair Work Act 2009.

However, these are set to be retired across Australia by 7 December 2023, unless an application is made to the Commission to extend the default period for the agreement. 

According to the union Professionals Australia (PA), DXC attempted to end the long-standing agreements in March 2023 and replace them with common law contracts, which “significantly eroded the terms and conditions in the agreements, especially those related to hours of work and redundancy”. 

In an internal company ballot, PA members resoundingly voted down the DXC proposal for common law contracts and the union applied to the FWC for an extension of the collective-based agreements.  

In its decision, the Commission ordered that the default period for the agreements be extended until August 2026, finding that employees were “likely to be worse off with respect to a number of long-standing conditions including hours of work and redundancy entitlements if the Agreements cease to operate”. 

“We respect the role of the Fair Work Commission and its decision. We will continue to take a fair and responsible approach towards our employees," a DXC spokesperson said.

Professionals Australia’s CEO Jill McCabe said the DXC proposal to move to common law contracts would have left employees worse off. 

“DXC employees worked together and voted down DXC’s proposal and PA was able to advocate to the Commission on their behalf,” she said. “Working together, we have secured an outcome where DXC employees will be better off. 

“This is a great result for these workers, particularly given the insecurity and upheaval within the tech sector at the moment.” 

The three-year extension now allows all parties to reach a new enterprise agreement.

In April, DXC Technology appointed channel veteran Karl Sice as a client partner. He is now responsible for the general management, delivery of solutions and growth of DXC's NSW government business in Australia.  

Last month, the systems integrator donated 30 refurbished laptops to Malak Primary School in the Northern Territory as part of its Digital Future Program.

The initiative has provided refurbished technology for over 10,000 students at foundations, not-for-profit organisations, schools, community student programs, community-controlled health services and community councils.

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