Editorial on 7-eleven wage fraud

This editorial discusses the wage fraud scandal at 7-eleven and its social and governance implications. It highlights the exploitation of low-wage workers, the ineffectiveness of the governance policy, and the need for stricter laws and regulations. The article also emphasizes the importance of social justice and equal treatment for all workers.

Running head: EDITORIAL
Editorial on 7-eleven wage fraud
Name of the student
Name of the University
Author note

1WAGE FRAUD IN 7-ELEVEN
Introduction
Newspapers have different viewpoints based on their organisational values, readers
and news angle. It is important for the differences to exists so that the readers can gain
various perspective on a certain issue. Editorials of the newspaper is a space were the editor
generally writes a piece based on topic of importance. It is a special piece of news for its
valuable opinion that represents the newspapers viewpoint. An editorial cannot be biased but
simply state an opinion without being abusive. The first editorial is a criticism based on the
sociological viewpoint of the fraud as a sociological deterrent while the second is a criticism
on the effectiveness of the governance policy.
7-eleven a scam and a social obstacle in Australia
There seems to be hope for the 7-eleven wageworkers. The convenience chain’s
chairperson Russ Withers has promised to pay the workers who have suffered under the
circumstances and has issued a commission to address the issue of reimbursement at the
earliest. Does this step come too late? The compensation that the company is providing
should be considered a social justice or as mediation policy to hush the scandal.
Most of the employees are usually foreign students and immigrants who are often
unaware of the legalities involved at workplace. They often face discrimination at workplace
due to language barrier, end up working more, and paid less. Even though they contribute to
the Australian economy significantly, they remain a vulnerable group. Their employers have
threatened them of deportation, under paid, abused. The editor has criticised this systemic
exploitation of low wageworkers by the employers. This is not just a fraud but has deep
psychological and social implications that is completely unnoticed. Seven eleven was not just
an economic and political issue it was a sociological issue as well. A prevalence of work
culture that supports and aids abuse of immigrant workforce. Implies that there is a

2WAGE FRAUD IN 7-ELEVEN
sociological ramification of this, which portrays that Australia is not good to their immigrant
workforce. This harms the worldview of the country remarkably, where the country is viewed
upon as a racist country. Australia has always been pro immigrants but because of such a
portrayal suffers economically, politically and socially the worldview of Australia has been
harmed considerably. Australia is missing business, tourism because people are unsure of the
social standpoint.
The company has been involved in systematically extorting its immigrant workforce
for quite some time before it was brought to attention of the Australian public. It is
remarkable that the raids conducted by The Fair Work Ombudsman showed out of the 20 7-
eleven stores showed 60 percent of pay roll issues yet no action was taken against the
company. The editor has blamed the ineffectiveness of the governance policy, which has
aided such a practice to go on. According to Maurice Blackburn Law firm, who represents
cases of wage fraud pro bono they seek to find social justice to those who have been effected
by the incident. They have stated that the independent board as so far compensated $10
million dollars to 300 workers in back pay which amounts to $38,000 dollars so far. The firm
states that the immigrants are so scared to report the crime or even seek legal assistance to
claim the compensation that many do not want to report it. This helps the company further
which has successfully threatened poor immigrants so much that they do not want to seek
justice saving the company millions. This illustrates the true policy of 7-eleven. The editor
criticised 7-eleven employers exploiting and then apologising for their mistake in public does
not cure the inherent issue of abuse that is rampant. While it is certainly a relief for the
workers who can seek addressal to be compensated, there are still several others who are
scared to get involved with law and government. Does this imply a problematic social
undercurrent in Australia? The country must come with work law transparency to ensure
every worker. Australian or immigrant should know of his or her workplace right.

3WAGE FRAUD IN 7-ELEVEN
The editor stated there needs to an understanding of the work culture that is prevalent
in the low wageworkers this can be helpful for the government to enforce stricter laws as well
as improve their social standing. Social justice can be served when people are treated equally
and respected for the person they are irrelevant of their race.
Layering laws is not helping the wage fraud scandal
7-eleven holds a special place in the Australian history as the biggest corporate fraud
of all time. The facts that have surfaced through ABC’s four corners and Fairfax Media has
shown the extent of damage that the company has inflicted systematically on thousands of
workers over the past few years. These facts was criticised by the editor, blaming the
existence of a deeper problem in the labour market of Australia and the implementation of
government policy. While the politicians suggest there needs to be further laws, the current
system indicates a faulty system.
The editor blamed the government for aiding 7-eleven to side to their interest under
the façade of so-called public interest. This public interest has never been more than a joke; it
has always profited the employers not the employees. In the wake of such wage frauds, that
has taken toll on so many people. It raises an important question on the effectiveness of the
existing labour laws. The editor blames the faulty regulatory system, which has prompted
systematic exploitation in the labour market. There has been a marked increase in the
sourcing of labours through intermediary process thus avoiding labour laws. Big corporates
often remain unanswerable and avoid liability for their faulty business structure that is
extremely exploitative in nature as in this case. When ACCC former chairperson Alan Fels
pointed that the faulty business module is responsible for wage fraud, Russ Withers simply
brushed this allegation off effectively avoiding liability. Lastly, the penalties for avoiding

4WAGE FRAUD IN 7-ELEVEN
labour laws is minimal, therefore it aids the fraudulent system further. The Fair Work
Ombudsman have released a report that they have received an amount of $1M dollars in
compensation for the employees but the government has no law to penalise the faulty
business model created by 7eleven which has led to its franchises underpay its workers. The
editor blames the loopholes in the law system that indirectly benefits cases like 7 eleven.
The editor analyses that such scandal is a small inconvenience for 7 eleven and after a
significant time has passed, the corporates are at it again. Defrauding the employees and
avoiding tax laws benefitting only one small section of the society. This is extremely
damaging for the political and economic sphere. However, the time is right for the politicians
to act responsibly and form better regulatory methods rather than layer more laws. The
country is begging for a redefinition and regulations that are more sophisticated that is in the
best interest of the government and all Australians.
Conclusion
The first editorial talks about the main vulnerable group and the possible mediation of
the same while the second article discusses a more financial as well as governance failure. It
comments on the issue and the relevance of implementation of the laws. The audiences in
both the newspaper is different therefore they need different addressing of the same issue.
The Australia has a different audience want a social approach and general explanation of the
matter than The Financial Review that looks for business aspect of the topic and the
government approach to the matter.

5WAGE FRAUD IN 7-ELEVEN
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