Institutional investment manager IFM Investors has been instrumental in the collapse of contractor Tandem Corp, leaving thousands without work.
According to the Australian Financial Review, contractor Tandem Corp was half-owned by IFM and collapsed owing an estimated $3 million in wages to employees and 86 staff were sacked while hundreds more faced uncertainty about their jobs.
Directors representing IFM, which was the investment arm of 26 industry super funds and $148 billion, had put Tandem into administration after a major class action by a subsidiary prevented Tandem from winning work.
A move into administration also meant it was unlikely the class action would reach court.
On its website, Tandem Corp said it managed over 2,900 subcontracting companies who employed more than 5,200 workers.
IFM directors, Stuart Wardman-Browne and David Odgers, were the only two people remaining on the Tandem Corp after the remaining directors quit.
IFM directors, which was chaired by former Australian Council of Trade Unions (ACTU) secretary, Greg Combet, were the only two left on the Tandem board after the remaining directors quit.