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Article

21 Nov 2018

Author:
David Marin-Guzman, Financial Review

Workforce contractor Tandem hit with $400m class action over 'sham contracts'

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A Telstra and Foxtel contractor backed by industry fund-owned IFM Investors is facing a $400 million class action for allegedly underpaying thousands of technicians through sham contracts.  Shine Lawyers filed what is understood to be the largest employment-related class action case ever against Tandem on Wednesday, with the potential of covering more than 4700 workers.  Tandem, formerly known as Infrastructure Services Group Management, is one of Australia's largest private companies...

[T]he class action alleges the company's business model is premised on treating independent contractors as employees but without minimum wages, leave, overtime or other entitlements...Special counsel Vicky Antzoulatos said Shine Lawyers had been investigating the claims since January and that many Tandem workers became overwhelmed by the work conditions, debts and low pay...Several hundred Tandem workers come from the most vulnerable groups, including long-term unemployed, the disabled, Indigenous Australians and former offenders...

A Tandem spokeswoman said the class action was "misconceived" and "evidence will show that our business model is sound"...