AirTree in super choice dispute

Several superannuation funds that want to crack down on workplace on-boarding software providers that advertise superannuation products have caused open warfare, with Hostplus now calling for the board of one of the biggest HR players to consider firing its chief executive.

The industry fund wrote to AirTree Ventures, through which it invests in Employment Hero, accusing CEO and co-founder Ben Thompson of being “erratic” and threatening to take him to the regulators to stop his “false claims”.

In the letter published by Mr Thompson himself, Hostplus said: “We also suggest that the board of Employment Hero should now consider whether Mr Thompson’s position as CEO remains tenable in light of his conduct.”

“Any claim that Hostplus has advocated for a ‘ban’ on the operation of workplace management platforms, has sought to prevent or limit consumer choice of superannuation funds, or has otherwise acted anticompetitively, are completely false.”

Onboarding software startups have surged in popularity, with companies turning to platforms such as Employment Hero, SuperAPI and Tanda to simplify employee on-boarding.

The platforms require employees to hand over among other things their super fund details, which then gives them the option to join another fund or stay with their fund.

But funds including Rest, Hostplus and Aware Super, along with SuperAPI and Tanda, say that when that happens many providers are giving preferential treatment to certain providers, with which platforms have undisclosed advertising agreements.

All parties want different restrictions on advertising, while UniSuper did not support a ban and Australian Retirement Trust said it risked hurting engagement.

The fallout between Hostplus and Mr Thompson, comes after he accused the fund of anticompetitive behaviour and wanting to shut the tech unicorn down on calls to ban advertising on its platform.