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NBN Supplier Taken To Cleaners Over $400m Sham Contract Claim

Australia’s telecoms sector has been rocked by a potential $400 million class action which alleges the arrangement of sham contracting arrangements at communications services heavyweight Tandem, a contractor for the NBN rollout.

Shine Lawyers claims the landmark action could redefine contracting arrangements and related labour costs across the telecoms sector and the channel.

The law firm alleges that conditions and arrangements required of contractors effectively made them employees and it is, therefore, pursuing a claim for back pay and entitlements for as many as 4700 workers.

The class action is being run by Shine and is backed by litigation funder Litigation Lending Services. The new Australian Communications Workers Alliance and two branches of the Victorian Communications Workers Union have also thrown their support behind the action.

“Our investigations have revealed that telecommunications workers who were purportedly employed under sub-contracting arrangements, were actually employees of ISG Management and therefore entitled to benefits such as wages, leave, allowances and overtime payments,” said Shine.

A spokesperson for Tandem has said the company will defend the case.

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