7-Eleven alters model but legal action possible

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

Chairman, CEO quit 7-Eleven board

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

7-Eleven franchisees chose own pay rates

Original article by Adele Ferguson, Sarah Danckert, Mikaela Day
The Australian Financial Review – Page: 23 : 25-Sep-15

Key executives of 7-Eleven Stores appeared before a Senate hearing on 24 September 2015. CEO Warren Wilmot revealed that until a few years ago franchisees had been able to pay staff what they deemed appropriate without reference to the minimum wage. He stressed that this system is no longer in place. Meanwhile, 7-Eleven executive Natalie Dalbo said there has been a 16 per cent increase in the wages paid to employees of 536 stores that use the group’s centralised payroll system since a media expose on the wage scandal.

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

7-Eleven was warned over worker fraud

Original article by Adele Ferguson, Sarah Danckert
The Age – Page: 25 : 24-Sep-15

Consumer advocate Michael Fraser has revealed in a submission to a Senate inquiry into wage exploitation at 7-Eleven that he first warned the convenience store group of the scandal in late 2012. Meanwhile, Stewart Levitt, the principal of law firm Levitt Robinson, has used his submission to urge the Federal Government to hold 7-Eleven’s Melbourne head office accountable for the scandal, rather than franchisees. He says the Government should provide an amnesty for 7-Eleven workers who are on student visas.

CORPORATES
7-ELEVEN STORES PTY LTD, LEVITT ROBINSON, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, MAURICE BLACKBURN PTY LTD, AUSTRALIA. FAIR WORK COMMISSION

7-Eleven founder resigns from AOC

Original article by Adele Ferguson, Sarah Danckert
The Australian Financial Review – Page: 11 : 10-Sep-15

The wages scandal at 7-Eleven Stores has prompted chairman and founder Russell Withers to step down from the Australian Olympic Committee (AOC) board. Withers had been on the AOC board since 2001. Meanwhile, 7-Eleven board member Michael Smith has stood down as the chairman of the Australian Institute of Company Directors while the convenience store chain undertakes an investigation into the affair.

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

Visa amnesty needed for all victims

Original article by Stephen Clibborn
The Age – Page: 44 : 9-Sep-15

The Australian Government is said to be considering providing an amnesty to foreign students who have been allegedly cheated out of wages by 7-Eleven. While the Government should grant an amnesty to international students, it also needs to take action on the exploitation of all foreign workers by dodgy employers. Data from the Fair Work Ombudsman shows that migrant workers on temporary visas are also being underpaid by employers in many sectors of the economy. Any amnesty should apply to all of these employees.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, UNIVERSITY OF SYDNEY

Softly, softly IR push

Original article by Ewin Hannan
The Australian Financial Review – Page: 1 & 8 : 5-Aug-15

Tourism Accommodation Australia chairman Martin Ferguson has urged the Federal Government to look at implementing the Productivity Commission’s proposed changes to penalty rates. The draft report recommends reducing Sunday penalty rates for workers in sectors such as hospitality and retailing to the level that applies for people who work on Saturdays. It also recommends allowing small and medium enterprises to offer new employees a statutory enterprise contract that does not have to be approved by the Fair Work Commission.

CORPORATES
TOURISM ACCOMMODATION AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF EMPLOYMENT, ACTU, AUSTRALIAN LABOR PARTY

Softly, softly IR push

Original article by Ewin Hannan
The Australian Financial Review – Page: 1 & 8 : 5-Aug-15

Tourism Accommodation Australia chairman Martin Ferguson has urged the Federal Government to look at implementing the Productivity Commission’s proposed changes to penalty rates. The draft report recommends reducing Sunday penalty rates for workers in sectors such as hospitality and retailing to the level that applies for people who work on Saturdays. It also recommends allowing small and medium enterprises to offer new employees a statutory enterprise contract that does not have to be approved by the Fair Work Commission.

CORPORATES
TOURISM ACCOMMODATION AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF EMPLOYMENT, ACTU, AUSTRALIAN LABOR PARTY

‘Keep penalties, but cut them’

Original article by John Ferguson, Paige Taylor
The Australian – Page: 1 : 29-Jan-15

The Australian Retailers Association supports the retention of the penalty rates system for people who work on weekends and public holidays. However, executive director Russell Zimmerman argues that penalty rates for casual workers should be reduced in order to encourage employers to hire more staff and to trade on weekends and public holidays. He adds that consumers want to be able to shop at times that suit their needs

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. FAIR WORK COMMISSION, INDEPENDENT GROCERS OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW