Editorials on News Reports about Wage Scandal in 7 Eleven

Running Head: EDITORIALS ON NEWS REPORTS ABOUT WAGE SCANDAL IN 7-
ELEVEN
Editorials on News Reports about Wage Scandal in 7-Eleven
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EDITORIALS ON NEWS REPORTS ABOUT WAGE SCANDAL IN 7-ELEVEN1
Introduction
The wage scandal of 7-Eleven has been exposed to the public by Fair Work and other
media houses, which has highlighted the percentage of money being ripped off from the
employees by the franchisees. While the Chairperson of the chain of convenient stores has taken
up the responsibility for paying off the wage rip offs.
Editorial one
Title: Wage Scandal of 7-Eleven: Cutting to the Heart of the Matter
The exploitation of workers has been going on for years in various franchises of 7-
Eleven. The exposure took place as ABC’s “Fair Corner” and “Fairfax” media house released
reports that showed the messing up with payrolls was only the tip of the iceberg (Ferguson &
Danckert, 2015).
The reports show that the labor market of Australia is on a trip downhill. The majority of
the working forces being as high as 1.3 million are bound by their conditions of being granted a
visa makeup for one among ten workers. The wage rip off is not only being detrimental for the
workers, but also for the taxation system of the Australian government as taxes are not being
filed for more than hundreds of millions of dollars on a yearly basis. The wage fraud that has
been reported by Fair Works itself stands to be more than tens of millions of dollars (Ferguson &
Danckert, 2015). The worst hit group of workers is students who are on student visas that allow
them to work for not more than twenty hours every week. This makes them the most vulnerable
and prone to being exploited by the employers. As per the raids carried out by the Fair
Ombudsman, the rate of abuse is getting worse with each passing year. Fair Work raids that took
place on September 2014 revealed that almost 60% of the total count of 20 stores have issues

EDITORIALS ON NEWS REPORTS ABOUT WAGE SCANDAL IN 7-ELEVEN2
directly based on their payroll (Ferguson & Danckert, 2015). Here, the Senate is also questioning
the effectiveness of Fair Work. The internal review that took place in July and August has
showed that there are issues with complying with the payroll in more than two-third of the stores,
while some findings have been reported to be repetitive in nature.
To address this issue, 7-Eleven has released statements that say them being “extremely
disappointed” by the dysfunctional nature of the franchisees and have called for “appropriate
actions” being taken against those at fault (Ferguson & Danckert, 2015).
The basic question that arises from this response of the authorities is whether they have
understood the problem that has been responsible for the wage swindle. The answer is a clear no.
the heart of the issue remains to be the business model that is primarily driven towards exploiting
the employees systematically by depriving them of their wages. The fact is that the remedies
have been nothing but temporary, as the head offices have paid off the pending wages of those
who have been denied. The root cause of a faulty business system keeps being functional and
hence is adding to the issue instead of eliminating it. Some business houses have come up with
excuses such as not being aware of the basic pay scale that they are required to pay their
employees. This state of affairs needs to be highlighted by the politicians and regulators before
they spiral out of hands.