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ISGM cowards cut and run from obligations to workers

Solicitors for the disgraced Telstra service partner ISGM have advised the Federal Court and Shine Lawyers that the company had been placed into voluntary administration, effective 1 July 2021.

This news comes not long after unsuccessful mediation between ISGM and Shine Lawyers in relation to the pending class action lawsuit – where ISGM is being accused of sham contracting employment practices in the telecommunications industry.

Hundreds of CEPU members across the country are currently party to that lawsuit which has now been ‘stayed’ until either the administrator provides written consent for the class-action to proceed, or the Federal Court permits it.

Shine Lawyers advise they are currently investigating the situation and any appropriate avenues that exist to progress the lawsuit. Subbies who have performed work on behalf of ISGM at any time are encouraged to register for the class action. This can be done by clicking here.

In the meantime, CEPU National President Shane Murphy has called on Telstra to intervene and ensure workers were not left jobless.

“The work is there – it always has been,” said Mr Murphy.

“These crooks have been caught out red handed ripping off its workforce – that’s the real reason they’ve wound themselves up.

“This news coincidentally comes at a time where mediation has been unsuccessful and where ISGM was mere months away from having to face up and justify their actions in a court of law.

“We’re calling on Telstra to do the right thing here and ensure the ISGM employees and subbies who have kept Telstra’s network online through the worst national health emergency in 100 years don’t find themselves out on the street without access to their income.

“Telstra should take all necessary steps to ensure these workers continue to have access to meaningful work opportunities within the network and workers’ outstanding entitlements are paid – we are engaging with Telstra on this issue.

“It has also become apparent that ISGM has been put in to administration, yet may be continuing to operate under a new name in a deliberate attempt to circumvent their obligations to workers.

“This is scandalous and these grubs need to be held accountable.”

The CEPU is seeking legal advice on the best avenue to secure outstanding entitlements for affected workers and will keep members posted.

In the meantime, should you require any further information, please contact your State Branch Official for assistance.

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