CONVENIENCE STORES – AUSTRALIA

7–Eleven appoints fraud investigator

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Original article by Patrick Hatch
The Australian Financial Review – Page: 19 : 3-Feb-16

Australian convenience store chain 7-Eleven has hired an unnamed former police detective with expertise in fraud and economic crime in the wake of the wage exploitation scandal. The ex-police officer will investigate allegations of fraud and breaches of workplace laws at 7-Eleven stores. The Fair Work Ombudsman has also taken legal action against some franchisees, while the Fels Wage Fairness Panel has been established to compensate employees who have been underpaid.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION

Exploited 7-Eleven workers will not lose their visas

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Original article by Max Mason
The Australian Financial Review – Page: 15 : 21-Dec-15

The Australian Government has advised that foreign workers who were underpaid by 7-Eleven will not have their visas cancelled if they assist with investigations into the scandal. Giri Sivaraman of law firm Maurice Blackburn says this is likely to encourage more exploited workers to come forward. The Shop, Distributive & Allied Employees’ Association claims that wage exploitation is still occurring.

CORPORATES
AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION, 7-ELEVEN STORES PTY LTD, MAURICE BLACKBURN PTY LTD, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION

7-Eleven affair a signal to franchisors

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Original article by Adele Ferguson
The Australian Financial Review – Page: 40 : 7-Dec-15

A revised franchise agreement that has been proposed by 7-Eleven Australia indemnifies head office for any future liability for underpaid staff. However, the convenience store chain has agreed to pay the first $A25m of any claims for unpaid wages that are received by the independent wage review panel that was set up in response to the wage exploitation scandal. Franchisees will be required to pay the next $A5m worth of claims, but head office will equally share any liability for claims beyond this sum. This has significant implications for other franchisees, amid claims that the wage scandal is not limited to 7-Eleven.

CORPORATES
7-ELEVEN STORES PTY LTD, BAKER’S DELIGHT HOLDINGS LIMITED, UNITED PETROLEUM PTY LTD, SUBWAY SANDWICHES PTY LTD, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, PIZZA HUT AUSTRALIA, EAGLE BOYS PIZZA, NANDO’S AUSTRALIA PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, 7-ELEVEN FRANCHISE ASSOCIATION, LEVITT ROBINSON

7-Eleven workers’ back-pay begins

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Original article by Adele Ferguson, Sarah Danckert
The Australian Financial Review – Page: 16 : 23-Oct-15

The Allan Fels-led Wage Fairness Panel has begun processing the wage claims of current and former 7-Eleven employees. The panel will invite 15,000 past and present 7-Eleven workers to submit claims for back-pay in the wake of the wage exploitation scandal. Fifty claims for back-pay have been processed so far, and these employees will collectively be paid around $A1.1m. It is estimated that 7-Eleven could potentially have to pay around $A300m to settle all claims.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION

7-Eleven pumps $200m from petrol

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Original article by Adele Ferguson, Sarah Danckert
The Sydney Morning Herald – Page: 21 : 20-Oct-15

The wage exploitation scandal has prompted 7-Eleven Stores to propose increasing the fuel commission paid to franchisees. Owners of outlet that sell petrol are currently paid $A0.01 for every litre they sell. Head office has proposed lifting this to $A0.015 per litre, although some franchisees are pushing for $A0.03 per litre. Internal documents show that head office’s gross income from fuel sales was $A197.5m in 2014-15, while franchisees were paid $A18.3m in fuel commissions.

CORPORATES
7-ELEVEN STORES PTY LTD

Termination changes for 7-Elevens worry franchisees

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Original article by Adele Ferguson, Sarah Danckert
The Australian Financial Review – Page: 5 : 13-Oct-15

Australian Greens MP Adam Bandt wants an amendment to the Fair Work Act in the wake of the wage exploitation scandal at 7-Eleven. His private members’ bill would make a franchisor liable if a franchisee fails to pay staff the correct wages. Meanwhile, 7-Eleven franchisees in Melbourne are concerned that they will not gain much from a proposed change in the way profits are split with head office. They also fear that new termination clauses could be exploited by head office.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIAN GREENS

7-Eleven operators to face court amid wage scandal

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Original article by Adele Ferguson, Sarah Danckert
The Age – Page: 3 : 12-Oct-15

The Fair Work Ombudsman will prosecute Yiran Gu and Haiyao Xu over allegations that they underpaid staff at a 7-Eleven store in the Melbourne suburb of Parkville. They potentially face fines of up to $10,200 for every breach of workplace laws, while their private company could be fined up to $A51,000 for each offence. The Parkville store and 19 other 7-Eleven outlets were raided by the FWO in September 2014. Gu and Xu are also accused of falsifying payroll records.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, HIYI PTY LTD

7-Eleven alters model but legal action possible

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Original article by Adele Ferguson, Sarah Danckert, Damien Murphy
The Australian Financial Review – Page: 8 : 9-Oct-15

At present 7-Eleven franchisees currently receive 43 per cent of their stores’ profits. However, the Australian convenience store chain has proposed a new business model with a sliding scale for the profit split, based on a franchisee’s earnings. Many franchisees who attended a meeting in Sydney on 8 October 2015 were not impressed with the new business model, which was developed in response to the wage exploitation scandal.

CORPORATES
7-ELEVEN STORES PTY LTD

Vast majority of chocolate-bar buyers get their fix from supermarkets

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 7-Oct-15

A Roy Morgan Single Source survey has found that 6.5 million Australians aged 14+ (or one-third of the population) buy at least one chocolate bar in an average four weeks. The survey, which was carried out in the year to June 2015, also shows that 4.9 million Australians bought a chocolate bar at a supermarket (76 per cent of the chocolate bar buying public). Some 498,000 people (eight per cent of chocolate bar buyers) made their purchase at a convenience store or petrol stations, while 86,000 people used a vending machine and 81,000 shopped for chocolate bars at a milk bar or corner store.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Chairman, CEO quit 7-Eleven board

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Original article by Adele Ferguson, Sarah Danckert
The Australian Financial Review – Page: 4 : 1-Oct-15

Former Australian Institute of Company directors chairman Michael Smith will succeed Russ Withers as chairman of convenience store group 7-Eleven. Withers and CEO Warren Wilmot resigned on 30 September 2015. Smith believes that the problem of wage fraud is more far-reaching than just at 7-Eleven, and he favours an amnesty for international students who have been caught up in the scandal. He also suggests that visa rules could be changed to allow them to work for more than 20 hours a week.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION