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.
The Transport Workers’ Union (TWU) has called for jail terms for employers who deliberately underpay their staff.
TWU national secretary Tony Sheldon said this was “wage theft” and it was time to treat bosses with the same rules as employees.
The call follows a string of scandals at franchise operators 7-Eleven, Caltex, Domino’s Pizza and Pizza Hut, where employees have been underpaid by tens of millions of dollars. 7-Eleven has so far paid out $90 million for non-payment of wages while Caltex has set up a $20 million fund to repay their workers.