7-Eleven hands more profit to franchisees

Embattled convenience store chain 7-Eleven will share more profits with its franchisees after it underpaid international students.

7-Eleven

7-Eleven. (AAP) Source: AAP

More profits will go to 7-Eleven franchisees as the embattled convenience store chain bids to "incentivise" ethical conduct.

Franchisees will have to meet reporting, compliance and oversight conditions to get the benefit of the new profit model, which is being rolled out over the next few months.

The company's chairman Russ Withers and chief executive Warren Wilmot quit in September after revelations international students were threatened with deportation if they reported exploitation.

New chairman Michael Smith said the new profit-sharing model will deliver a considerable shift in value to franchisees from 7-Eleven.
"The updated model recognises the changing retail landscape and is part of a suite of measures that provide an appropriate and lasting remedy to the challenges being confronted by all of us," Mr Smith said on Thursday.

Mr Smith said the new model would ensure a fair, equitable and sustainable outcome for all, and incentive driven ethical and responsible business practices.

"(There is) zero tolerance for unlawful and inappropriate activity," he said.

Mr Smith had previously denied the company's business model forced franchisees to look at ways to cut costs, including systematically underpaying staff, but he said the board would meet to discuss ways the model could be changed.

The company has set up an independent panel to hear confidential claims of underpayment, and aims to repay all affected workers by Christmas.

Mr Withers, who founded the 7-Eleven chain, is still chairman of the holding company that owns 7-Eleven and Starbucks stores in Australia.


Share

2 min read

Published

Updated

Source: AAP



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world