Friday, May 13, 2016

7-ElevenBack in the Spotlight

7-Eleven is back in the spotlight with franchisees accused of inflicting retaliation, intimidation and threats against underpaid workers.

Now, the company has axed the independent compensation panel chaired by Professor Allan Fels, the former Australian Competition and Consumer Commission chairman (ABCC) and   economist professor David Cousins.

The panel was set up in September last year in the wake of revelations of widespread exploitation of workers at 7-Eleven stores, with some staff paid 47 cents an hour.

7-Eleven issued a statement on Wednesday  saying the Fels panel will close on Friday and had “agreed to transition the claims process for past under-payment of wages by franchisees to an independent unit within 7-Eleven”.

The panel was set with the agreement it would be autonomous and 7-Eleven management would not interfere with its assessments.

However, in a public statement released last night, Professor Fels denied the claims of an amicable agreement to allow matters to be handled in-house.

And he launched an unusual  scathing public attack on the embattled convenience store operator.

“We have heard from employees that franchisees have conducted a campaign to frighten employees from, making claims including, in some cases, with threats of physical intimidation but more often with dire threats of retaliation against them and their families of numerous kinds,” he said.

Unions say there’s evidence up to 20,000 workers were underpaid over the past decade.

ACTU Secretary Dave Oliver warns 7-Eleven is not alone.

Exploitation within other high profile companies including Myer and Pizza Hut highlight  the systemic underpayment of staff and exploitation of workers.

“The high profile cases we have seen in recent months are only the tip of the iceberg. At any point in time, unions are engaged in dozens of legal fights with unscrupulous employers who have underpaid staff or tried to avoid honouring workers’ entitlements.”

And Professor Fells dismissed attempts to discredit his panel’s findings through allegations fraudulent claims were being made.

“This is not the panel’s impression from the numerous claims that it has assessed.”

He revealed there had been some back-pay claims of up to $400,000.

However, 7-Eleven had “applied great pressure” to the panel to keep these secret.

Professor Fells said removing the panel was “very bad news” for the compensation process.

Already, hundreds of employees have been reimbursed about $12 million. And there are a further 2000 claims that are yet to be processed.

Professor Fels took to both Twitter and Facebook last night  to put his views on record.

He is accusing the company of attempting to undermine his panel’s work and discredit it, hoping to reduce the cost of compensation claims.

Professor Fells is concerned  recently appointed chief executive of 7-Eleven Angus McKay, is breaking commitments to accept the panel’s decisions without question, and attempting to change the terms of reference.

The  panel was set up in the wake of revelations up to 60 per cent of 7-Eleven franchisee workers were underpaid, earning between $10 and $12 an hour — less than half of the award wage of $24.69.

7-Eleven chairman Russ Withers and CEO Warren Wilmot resigned in aftermath of the controversy.
Professor Fels warned staff at the chain are still being bullied.

“There is, to this day, retaliation, intimidation, threats from the franchisees against the employees,” he said.

Meanwhile, the ACTU is calling for more protection for workers.

“We welcome the alternative Government’s plan to increase penalties for employers, ramp up worker protections from sham contracting, increasing the powers the of the Fair Work Ombudsman and better protect vulnerable overseas workers,” Mr Oliver said

No comments: