7-Eleven

Compensation paid to 7-Eleven workers by 7-Eleven's head office has so far reached $110 million — an average of $39,000 for each of the 2832 claims by workers who were underpaid by franchisees.

The payout is much greater than fines that could be imposed under existing laws, raising questions about whether the federal government's proposed law to protect vulnerable workers will go far enough in holding similar conduct to account.

Employees of a Brisbane 7-Eleven store have told the ABC they were forced to pay back thousands of dollars from their wages or face losing their jobs.

They have backed up their claims with covert video showing an employee handing back a sizeable portion of her pay to the store franchisee.

Known in the industry as the “cash back” scam, workers are paid the full award rate of $25 an hour, but have to hand back up to $11 for every hour worked to the store franchisee.

A Pakistani student, Sohail, was paid only 47 cents an hour to work at a 7-Eleven store in Sydney. He is one of 60 workers claiming back pay from 7-Eleven. When another worker, Pranay Alawala, complained about receiving only $12 an hour, his employer said they would tell immigration officials he had been working too many hours, which was in breach of his student visa. He received $33,000 in back pay.
Resistance: Young Socialist Alliance’s “A World to Win” series aims to give voice to the ideas and demands of radical young people who are involved in the struggle to make the world a fairer and more just place. This week, Sarah Hathway discusses the struggle and exploitation of young people in the workplace. * * * There are many issues facing young people in or entering the workplace that impact not just on young people but on the broader working class as well.
If it wasn't painfully obvious before it should now be crystal clear now that there is no such thing as company loyalty. Loyalty from companies that is. ABC’s 4 Corners revealed last week that convenience store chain 7-Eleven was engaged in a wide-scale rip off of its workers by paying them below award wages, and in some cases below the minimum wage. It seems employees are fair game for the rapacious nature of capitalism.
Unite, a group that seeks to organise casual workers in Victoria, has called on the federal government to give an amnesty to any past or present 7-Eleven workers who may have breached their international student visa conditions. After ABC’s 4 Corners revealed the 7-Eleven half-pay scam the company was forced to launch its own independent investigation of the claims of underpayment. The Fair Work Ombudsman is also investigating the widespread underpayment of wages at 7-Eleven stores.
The Fair Work ombudsman began legal action on May 19 against a 7-Eleven store operator in Geelong who owed hundreds of hours in unpaid wages to four workers. The decision came after a two-year campaign by the Unite union, which organises workers in part-time and casual work. The ombudsman alleges that four workers were owed a total of $85,408 for work over 2005-09. One worker alone was underpaid $40,583.