7-Eleven bosses grilled over wages scandal

Under questioning at a Senate inquiry, 7-Eleven executives have denied they were aware about workers at franchises being paid below the required level.

7-Eleven

7-Eleven. (AAP) Source: AAP

Senators questioning 7-Eleven executives about widespread staff exploitation say they cannot believe the company's head office saw no signs of systemic abuse.

The chairman, chief executive and general manager of 7-Eleven were questioned on Thursday about underpaying staff during a Senate inquiry into the treatment of temporary workers.

Chairman Russell Withers said the management had no knowledge of the exploitation of workers.

"I can assure you that there is no cover-up," he said.
7-Eleven bosses also denied that underpayment was an integral part of the business model.

"Underpayment of staff at franchisees in no way benefits 7-Eleven," Mr Withers said.

Senator Deborah O'Neill told the company its oversight of its franchisees had been inadequate.

"I'm a little incredulous here," she said.

"I find it impossible ... to believe that your payroll system, in 2015, is so inadequate you are unaware that 69 per cent of your franchisees, as of July-August, were operating in a way that is not compliant."

Senator Sue Lines said she was anxious when she went into 7-Eleven stores, not knowing if the workers were being ripped off.

"Don't you find it extraordinary that ... you can't give us any idea, across your 620 stores, of how many are engaged in payroll irregularities and non-compliance?" Senator Lines said.

Staff advocate Michael Fraser earlier told the inquiry he had been trying to get the company's head office to act since 2012.

"They've been alerted to the activities in the stores but they just don't seem to be that diligent and that keen to have a dig," Mr Fraser told a hearing in Melbourne.

General manager Natalie Dalbo said the chain had been aware of a few stores that were paying below the required level but accepted the problem was more widespread than originally thought.

The company has offered to recompense underpaid staff, including former employees no longer in Australia, and there is no time limit on the claims.

The head office said it did not know how many franchisees might have underpaid staff despite a joint Fairfax-Four Corners investigation in August finding up to two-thirds of 7-Eleven stores could be in violation of the rules.

It has established an independent panel, headed by former competition watchdog boss Allan Fels, to investigate claims of underpayment.

The inquiry has been adjourned until November when a public hearing will be held in Canberra.


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Source: AAP



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