Monday, September 7, 2015

Students and franchisees being underpaid at 7-11

A new report by Fairfax media and the ombudsman shwo that employees are being underpaid yet again by 7-11. The head office earns a lot of money but the franchises have nothing.

Last year there were raids and the stores owner Sundarakumar, admitted to the wage fraud underpaying International students in Melbourne's CBD. He also admitted to falsifying records and making the students work 80 hours a week in breach of their conditions.

In fact International students work at night and they are paid around $10 an hour. There is a lot of shoplifting going on at night and the workers are forced to take that money out of their pay check.

There are 620 stores all over Australia and the head office gets a massive 57% of the profits earned for each store. Its founder Ross Withers lives in the Yarra Valley in a very expensive house. They also have a property in Brighton

Is the current business model and the cheap things viable?
The answer is no. There is store survelliance in every corner of the shop in which head office can see what the employees get up to. The franchises can't do their own thing. In our eyes this is not on. In the end everyone knows about the underpayment and will never shop there again. Many franchises have already closed up shop due to bad debt.

Our response
This is not a new issue for 7-11. It has happened many times before and we urge you to stop shopping at 7-11 even if it is just for $1 coffee or a $2 sandwich. It is just not worth it. This is the reason why we stay away from these convenience stores.

CISA said that students need to be aware of their rights and that is correct. We have shared this on Facebook and found that people like this and shared as well.

Over the weekend RNIS went to the Melbourne International student conference and one of the issues was student exploitation. Phil Honeywood from IEAA said that exploitation was unfortunate. It has to stop now and it can start with 7-11.

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