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Four Corners investigation leads to 7-Eleven review

Convenience chain announces an independent review of wages due to an ABC / Fairfax investigation.

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Convenience store chain 7-Eleven has announced an independent review of wages due to an ABC / Fairfax investigation that accused stores of paying staff just $10 an hour.

It announced the review ahead of the investigation aired on Four Corners last night.

Warren Wilmot, the CEO of 7-Eleven Australia, said a panel would investigate the accusations.

“The viability of the 7-Eleven system is in no way, and never has been and never will be, dependent on franchises underpaying their staff,” he said.

“This doesn’t let off the hook any franchisees doing the wrong thing, because we will pursue them to repay any money owed to former or present staff.”

He said the company would compensate any staff found to be underpaid and that they had reached out to the Fair Work Ombudsman regarding the issue.

Last night a company insider alleged to Four Corners that if franchisees paid staff the correct wages, many would face financial ruin.

He alleged 7-Eleven’s head office was aware of the systemic wage-rorting of employees, who are largely foreign students on visas.

“They [head office] can’t run 7-Eleven as profitably, as successfully, as they have without letting this happen,” the source said.

“The business is very proud of itself and the achievements and the money it’s made and the success it’s had, but the reality is it’s built on something not much different from slavery.”

Greens MP Adam Bandt will also seek a special hearing of the Senate inquiry into the working visa program.

Source: ABC, Nine News

2 Responses

  1. THe ABC/Fairfax reporting was based on a leaked investigation by 7-11 into the problem. So what will a new investigation achieve other than trying to spin the issue. Shutting down half the stores which are not legally profitable is the only answer.

    The convenience store model is based on the US where wealthy entrepreneurs pay a manager a salary of $25k to work 70 hours doing all the work, and hire people at $US 7.25 to work all night selling junk food to people with the munchies. Obama is putting an end to it by reinstituting overtime payments for salaried employees on less than $50k.

    Here it is based on owner/operators not paying themselves a wage and employing foreign students for work 40 hours and paying them for only the 20 allowed on their visas, because at $25 per hour its the only way to not go bankrupt. Fruit picking, meat processing, contract cleaning and takeaways…

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