IBM Global Services Australia (GSA), an outsourcing division of computer giant IBM, has cut 64 jobs from its data processing units in Sydney and Melbourne, leading to a mass walkout of 150 workers.
"Sixty-four jobs have been cut, roughly 150 [workers] have gone on strike, it's everyone who is responsible in that area," Community and Public Sector Union (CPSU) Communications Assistant, Secretary Stephen Jones said.
The CPSU, the union responsible for the 64 IBM workers, says the entire data processing unit in Sydney has been consolidated into its Clayton division in Victoria.
A total of 58 jobs in Sydney have been lost.
Furthermore, IBM GSA will outsource its media services division to JAV IT, in which six positions have been cut.
"Essentially there were two data centres, the whole division in Sydney has gone," Jones said.
According to Jones, the data processing unit is managed by IBM on behalf of Telstra to manage the telco's customer databases and emergency '000' service.
"Telstra was adamant that they run two data centres," he said.
Jones claims the axing of half the staff in the data processing division in Australia has been driven by IBM in the United States to increase profits and reduce costs.
IBM GSA says the job cuts are part of the company's infrastructure consolidation in its command centres.
An IBM spokesperson told ZDNet Australia, the company believes there are some people on strike, however, "there are not that many".
"I don't know how many. We're honouring the certified agreement the staff came under," she said.
"I must stress there are other options, not just redundancy available. IBM is a big company, so re-deployment is an option."
The Union representative told ZDNet, the workers do not believe the redundancy packages on offer are acceptable.
"Some of these people have worked for the company in excess of 15 years," Jones said.
