Wednesday, February 24, 2016

7-Eleven Wages Scam Continues

After speaking out about rampant underpayment and 60-hour working weeks, former 7-Eleven employee Bharat Khanna is helping other international students avoid exploitation, including one who has been allegedly paid as little as 48 cents an hour.


Mr Khanna said 7-Eleven workers were still being exploited despite being paid hourly rates of up to $25 on paper. After being paid the correct rate, they were then asked to hand back about $9 per hour in cash to their managers, leaving them underpaid at rates of $16 per hour.

More than 20 workers at 7-Eleven franchises in Northern Sydney, Newcastle and the Central Coast have told Mr Khanna they are still being asked to hand back cash to franchise owners.

"It's all done verbally because they don't want to keep any records," he said. "On paper everything is good. When people say no to handing back the cash, they no longer have a job. People are still not getting pay slips or proper breaks."

Mr Khanna, who began a full-time job with the Shop Distributive and Allied Employees' Association this week, is touring university campuses in Sydney and Newcastle to raise the awareness of overseas students about their rights at work.

The SDA, which represents retail, fast food and warehouse workers, has partnered with United Voice, the union for hospitality workers and cleaners, to this week launch a national campaign and 131732 hotline with free advice for overseas students about workplace entitlements.

"The students want a job whether it pays them $10 or $15 per hour, they are ready to take it," Mr Khanna said. "They convert it into their own currency and think it's a big amount. But they later realise their expenses are high compared to what they are earning."

Mr Khanna said he knew of international students who have failed expensive university subjects because they have kept working excessive hours for meagre salaries.

"My concern is that the exploitation is still happening and it's happening on a broader level. It's not just 7-Eleven who are doing it," he said.
"I would say the franchisee model is very bad in this country."

The SDA's national secretary Gerard Dwyer said the new Welcome to Work campaign would target international students at university orientation weeks around the country to support them in their study and work.

"Telling them that there is no other choice but to work long hours for little pay or else they will have their visas cancelled is completely immoral," Mr Dwyer said.

Mr Dwyer said a new amnesty for 7-Eleven workers appearing before a Senate inquiry into the exploitation of 7-Eleven workers should be extended to all international workers to prevent them from being deported for breaching their visa conditions by working more hours per week than permissable because their pay rates were so low.

Mr Dwyer said a key to the problem was head office taking a 50 to 56 per cent cut of a franchise owner's profits.

"This gives franchisees the incentive, some would say the imperative, to pay below legal wages," he said.

10 THINGS you need to know about working in Australia

  • If you're on a student visa, you are only allowed to work 40 hours per fortnight when your course is in session. During break periods you may work unlimited hours.
  • You should receive a pay slip listing your hours, wages, and any tax paid to the government – even if you get paid in cash.
  • You are entitled to a minimum wage.
  • You are entitled to extra money if you work nights, weekends or public holidays.
  • You must obtain a Tax File Number to be able to work.
  • Your employer cannot force you onto an individual contract.
  • You cannot work until you have commenced your course.
  • Your employer can't pay you in goods or services.
  • If you earn more than $450 per month your employer must pay superannuation.
  • You are allowed to join your union.

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