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Category: Business, Economics and Finance / Company News / Consumer Protection / Food and Beverage / Retail / Corporate Governance

7-Eleven and Fairwork sign deal to combat exploitation

Wednesday, 7 Dec 2016 09:15:10 | Sue Lannin

7-Eleven has paid more than $55 million in wages to workers who were underpaid by franchisees. (AAP: Paul Miller)

The Fairwork Ombudsman (FWO) has signed a landmark deal with convenience store chain 7-Eleven to combat exploitation of workers by franchisees through measures including biometric technology and CCTV supervision.

The regulator said the proactive compliance deed also had measures to stamp out "cash backs", where workers are forced to hand back part of their wage to franchisees.

The practice was revealed by the FWO's report on 7-Eleven in April this year.

Fair Work Ombudsman Natalie James said the deed committed the company to preventing unlawful practices including systemic wages fraud and the underpayment of workers.

"The measures in this deed are the most robust and comprehensive that any franchise brand has in place in Australia," Ms James said.

"The goal is to make sure franchisees pay workers correctly in the first place."

7-Eleven stores will have to install and oversee biometric shift scanning systems and CCTV at all stores to allow head office to monitor worker hours and to make sure that workers are paid correctly.

"Non-compliance in this network has been long-term, extensive and systemic. Some franchisees have demonstrated they will go to extreme lengths to circumvent record keeping systems," Ms James said.

Under the deed, 7-Eleven will have to improve systems and record keeping.

All franchisees will have to use a central payroll system that will specify minimum rates of pay for workers.

7-Eleven will also have to employ an independent auditor to carry out three annual audits to make sure the company is complying with workplace laws.

It will set up an internal investigations unit to investigate underpayment of wages and claims by 7-Eleven workers.

7-Eleven has paid more than $55 million in wages to workers who were underpaid by franchisees under a wage repayment program.

The company's chief executive Angus McKay said the company was doing all it could to stamp out wage fraud from its franchisee network.

AustraliaPlus


 

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