Advanced studies in industrial relations.
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Added on 2019-11-08
Advanced studies in industrial relations.
Added on 2019-11-08
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Advanced studies in industrial relationsAssessment item 2Report on the 7 Eleven case
Table of ContentsIntroduction............................................................................................................................................3Summary of the 7-Eleven inquiry...........................................................................................................3Why was inquiry done and what were the major findings......................................................................3Recommendations.................................................................................................................6Critically analyse any gaps in the Australian ER system that this inquiry raises in regard to the role of the state and the role of unions...............................................................................................................6Restriction on Union Action...................................................................................................9Implications of the inquiry for the regulation of ER in Australia – not just 7 Eleven.............................9References............................................................................................................................................11
IntroductionThis report explains the key features of employment relations system in the past 10 years inAustralia. There has been an existing system of collectivebargaining amongthe unions andstates, which has been developing from the year 1980s.As per the OECD report of 2009, the employee participation rate assesses the rate of workingage people which are economically active. This proportion of Australians has risen from74.05% in the year 2002 to 75% in the year 2009 (Davies & Freedland, 2015). This rise hasbeen very less in the period of five years because there was much more for improving andcatching up with other advanced nations.Summary of the 7-Eleven inquiry In June 2014, the investigation by Fair Work Ombudsman started with anenquiryforcomplaints of huge underpayment of wagesand depictionof falsified environment records inlots ofFranchiseenetworks of 7-Eleven (Hannan & Hannan, 2017). It is a big convenienceretailer of Australia. This investigation was carried out for checkingthe complaintbyconnected site inspections and also the inspection of the record keeping of around 20 storeswhich were taken as samples. Thisinvestigation haddifferentenquiriesof 7–Eleven stores.This investigation suggested that franchisees had made false and misleading records forsatisfying the audits and salary principles and they were underpaying the staffs.Why was inquiry done and what were the major findingsThe study was done because from 2008, there was continuous reporting from workers whoalleged that there washugeunderpayment of wages. The important matter was that there wasrising proof of underpayment connected to fraudulent records. Specifically, it was seen that
employers were lessening the number of hours as devoted by the staff members to record as ifthey were paid higher salariesthentheir actual wages.In 2008 and 2009, there were dozens of audits carried out by FWO for the convenience storesof Sydney and Melbourne (Forsyth, 2017). The results of such investigations showed thatSydney is convenientstoreat overIn Melbourne,investigationrevealed thatthere were approximately AU$112,000 in wagesrecovered for 88 workers at five convenience stores. One of the stores was given instructionstocredit aroundthousand hours oftheir yearlyleaves back to 12 permanent employees whowere not using their leave entitlements.The chief concern recognized in the audits was underpayment of price rates for weekends andnight shiftwork (Adele Ferguson, 2017). Although the substantiation did not imply the doublehour’s system was general, the FWO recorded with concern that a lot of underpaid personnelwere youthful worldwide students and mainly exposed to mistreatment.As per the enquiry, there was this huge employee exploitation carried out by the business. Itwas a fraud in case of wages. There had been falsified timesheets and roasters and thisinstant to be unlawful and fraudulent activity. It was seen that more than 69% of the outlets ofthe business had issues related to the payroll compliances along with fraudulent activitieswith respect to time rosters and records in single month only (Danckert, 2017).It was also seen that around six weeks had passed away in a few staff members were not evenpaid and also many were underpaid along with the Melbourne-based franchisee with holdingthe passport and driving license of employee’s. Generally the exploited individuals forstudents who had been on a student visa to Australia (Fusco, 2010).It was important to carry out an inquiry because it permits to glance further largely forrecognizing the root causes. Enforcement act, together with court case, is only one part of theexamination method (Kramer, 2016). The general method looks forward to set up drivers of
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