WorkPac is subject to another class action. The Canberra based law firm Adero is using a profit-driven model to fund its class action against WorkPac.
The Adero approach involves the use of a private litigation funder to bankroll the litigation in return for a hefty cut of any agreed settlement or court ordered compensation.
The Adero approach has been subject to significant criticism in the media in recent times. In another Adero employment related class action, Federal Court of Australia Justice Michael Lee is reported as saying:
“In excess of 50% of someone’s claim going in legal and funding fees. It’s a real worry”. (Australian Financial Review, 30 May 2019, at page 3).
The CFMEU believes that the wages and entitlements of mineworkers should go solely to mineworkers and not private litigation funders and law firms that are driven only by the profit motive. That is why we encourage affected mineworkers to join the CFMEU class action.