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Two NSW 7-Elevens lose franchises

A retail audit of two 7-Eleven stores in NSW has resulted in both being taken under direct head office control after workers were underpaid.

A 7-Eleven store
Two 7-Eleven stores in NSW have had their franchise agreements terminated for underpaying workers. (AAP)

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Source: AAP


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Two NSW 7-Eleven stores have had their franchise agreements terminated for underpaying workers.

The convenience chain is auditing stores after revelations international students were threatened with deportation if they reported exploitation at work.

"Effective today, 7-Eleven has taken operational control of the stores concerned and existing staff will be offered ongoing employment," interim CEO Bob Baily said on Tuesday.

"There are no winners in circumstances where people are underpaid."

Company chairman Russ Withers and chief executive Warren Wilmot quit in September after the revelations were made public.

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In October 7-Eleven announced more profits would go to franchisees in a bid to "incentivise" ethical conduct.

"7-Eleven does not condone the underpayment of franchisee employees and is doing everything it can, including working with franchisees, to stamp out the practice," Mr Baily said.

Retail specialists are still doing payroll audits of stores to make sure franchisees are doing the right thing.

The company set up an independent panel to hear confidential claims of underpayment, with the aim of repaying all affected workers before Christmas 2015.

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


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