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Tech contractor goes into administration while facing class action
A major Telstra and Foxtel contractor has gone into voluntary administration, while facing a $400 million class action from Shine Lawyers.
Lauren Croft
The class action against Tandem Corporation, formerly known as Infrastructure Services Group Management (ISGM), filed in November, 2018, was the largest employment-related class action in the country. The case was due to go to trial in October this year.
Over 4,000 technicians were allegedly underpaid by Tandem and the class action aimed to hold the company to account for its system of work that caused personal and financial hardship to many of these technicians.
Shine Lawyers alleges the subcontractors were employed under “sham contracts” and should be covered by the Fair Work Act (2009) and Telecommunications Services Award.
Shine Lawyers class action practice leader Vicky Antzoulatos stated that “the technicians that Shine represents are shocked, angry and disappointed that they will now miss out on having the Court determine whether they are actually employees and entitled to receive employment entitlements”.
“Shine Lawyers has spoken to many technicians throughout the course of these proceedings. Many have reported bullying and intimidation by this company, extreme control, take it or leave it job conditions, and not actually receiving enough jobs to make ends meet. This has resulted in bankruptcies, marriage breakdowns and suicides,” she said.
While the class action will be stayed as a result of Tandem’s financial position, the tech contractor, who reported revenue of $640 million a year in 2018, will partially survive. Tandem Networks, a separate entity established in 2019, has recently signed a new $30 million contract with Telstra, effective from 1 July 2021.
Tandem is also backed by investment firm, IFM investors, which is run by 27 industry superannuation funds and has over $150 billion funds under management as of March this year.
Shine Lawyers is currently investigating alternative avenues of compensation for those affected, assisting employees to make relevant claims for recovery and will oppose any deed of company arrangement that does not include provision to pay all employees their full and proper entitlements.
The firm will also be pressing external administrators to fully investigate whether value has been shifted onto other companies to avoid the class action, any breaches of the Corporations Act in any past or current directors of Tandem and the liability of the ultimate controllers of Tandem.
“The company fought these proceedings with two law firms, five barristers and an accounting firm backed by a global investment firm. It beggars belief that so close to trial, they put the company into voluntary administration and then are allowed to carry on business under a different company name,” Ms Antzoulatos added.
“The actions are an affront not only to workers in the telecommunications industry, but workers right across Australia who are trying to simply make ends meet for their families.
“Sham contracting is a scourge on the industrial history of this nation and needs to be stamped out”.
Lauren Croft
Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
