Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Australia 7-Eleven says probing workers' pay amid abuse allegations

Published 04/09/2015, 03:12 pm
Updated 04/09/2015, 03:17 pm
© Reuters.  Australia 7-Eleven says probing workers' pay amid abuse allegations
3382
-

* Firm hires former anti-trust regulator to lead probe

* Senate inquiry, TV report say firm underpays workers

* U.S. license holder also facing accusations of unfair treatment

By Byron Kaye

SYDNEY, Sept 4 (Reuters) - The operator of 7-Eleven convenience stores in Australia said it was launching its own probe into how its franchisees treat employees after a TV report and a Senate inquiry said the company was denying its workers proper pay.

In a statement, Australia's 7-Eleven Stores Pty Ltd, which is licensed by U.S.-based 7-Eleven Inc SILC.UL , said it had hired former Australian Competition and Consumer Commission chairman Allan Fels to lead an inquiry into whether it underpaid staff or forced them to work longer hours without compensation.

It also said it would reimburse the wages it owed underpaid workers.

"What has happened with franchisees not meeting their employer obligations has happened on our watch, and we are going to make this right," Chairman Russ Withers said in the statement, which was issued late on Thursday.

The probe by the Australian firm comes as the convenience store chain, which is ultimately owned by Japan's Seven & i Holdings Co 3382.T , is facing accusations of unfair treatment of its franchisees in North America. ID:nL1N0Y91AN

In Australia, the probe could force 7-Eleven Stores, which licenses more than 600 shops throughout the country, to cut the amount of profit it takes from store owners in a bid to stop them from underpaying staff to break even.

A Tokyo-based spokeswoman for Seven & i said the company was not aware of any allegations. The company does not disclose how much of its earnings it gets from Australia.

Former anti-trust regulator Fels told Reuters 7-Eleven Australia takes 57 percent of store profits, higher than in the United States. Asked about the employee mistreatment accusations, he said he believed they were very extensive, and not limited as the company suggested.

The working conditions at Australia's 7-Eleven Stores outlets have been the subject of a Senate investigation but the issue drew widespread attention when an Aug. 31 Australian Broadcasting Corp. report accused the company of letting franchisees threaten workers with deportation if they complained of being paid as little as half the minimum wage.

Australian Labor Senator Deborah O'Neill, part of the Senate Committee running an inquiry into mistreatment of temporary work visas, told Reuters the 7-Eleven franchisee practices amounted to "wage slavery".

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.