7-Eleven Scandal: Unethical Practices Analysis

This assignment delves into the 7-Eleven scandal, examining various allegations of unethical conduct against the company. It analyzes their exploitative practices regarding employee wages and working conditions, as well as their attempts to suppress worker dissent. The report also investigates the legal ramifications of these actions and proposes solutions to mitigate similar issues in the future.

Running head: INDUSTRIAL RELATION
INDUSTRIAL RELATION
Name of the student
Name of the university
Author Note

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Table of content
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
About the enquiry........................................................................................................................2
Critical analysis of the implications............................................................................................3
Alleviation of the issues raised against the 7 Eleven case regarding non union form of
employment.....................................................................................................................................5
Improvising of bargaining structures in the retail industry to avert clashes and conflicts..............6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
Australia is a hub of a huge number of retail outlets and departmental stores. One of the
known brands in the retail industry is 7 Eleven Inc. It is located in the United States with more
than 626 outlets in Australia itself. The first departmental store was opened in the year of 1977.
By the current time a huge number of franchise ownership rise to 442 and the amount of
transaction rose to approximately 185 million annually (Endo, 2014).
This report involves the implications of the enquiry that 7 Eleven faced related to wage
theft and double shift frauds, from the employees working in the outlets. The falsification of data
and records was the primary reason for the misplacement of the designations of the employees
(Briton, 2015). A detailed analysis has been done based on the implications against the 7
Eleven enquiry and how it can be implied on the non working form of employment
representation and the bargaining structures in the Australian Employment Relation system.
The purpose of this report is to understand and analyze the implications about how they
can used to represent and alleviate the allegation against the non-forms of employment
representation and the bargaining structures to prevent conflicts.
Discussion
About the enquiry
7 Eleven faced a major setback regarding allegations that rose against it. Allegations
regarding the inconvenience related to the disputed waging system and falsification of the data as
well as employment records against certain employees who supposed to be migrants.
Discrimination on certain basis added fuel to the crisis (Robertson, 2013). In the year 2014 Fair

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Works Ombudsman took up an enquiry against 7 Eleven regarding the allegations and upon
such several issues was illuminated that breached the rules of Fair Work Act and that the
company has failed to act as per the regulations of Fair Works Act and Fair Works Regulations
regarding the underpayment. With further enquiry, it was revealed that the young employees
faced much trouble and more than 70% of the audits were dubious (Bray, 2013). It was further
revealed that the company failed to comply with the allotted payment of the employees and the
maintenance of the records was not consistent. The irresponsibility of the company to set up an
enquiry inspection was a further blunder. Furthermore it was uncovered that more than 60% of
the franchise owner were amateurs in the retail industry and had no experience of employment
management with little or no knowledge about the Industry Relation System of Australia.
Shocking facts came up with the fact that most of the employees deployed were from vernacular
background an were supposedly migrants who were made to do overtime duties in the outlet. The
CCTV footage of the stores were manipulated by the owners who maintained their own business
pattern instead of the allotted time under the legal regulation.
Critical analysis of the implications
As discovered and alleged by the enquiry commission, the grounds of the proposition
was valid and it was indeed proven. 7 Eleven was indeed guilty of violation of the laws related to
the employment pattern and the working scheme. Falsification of data an employment identity
in order to gather free service from the employees as well as nonpayment of the overtime
working employees without commendable remuneration (Li et al., 2016). Breaching of the
protocols of appointing under experience franchise owners to flourish business was one of the
illegal involvement activities to harm one’s social security and integrity (Grasso, 2015). Lack of
necessary authorization and inspection to mitigate the data loss and appointment of vernacular

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employees as well as deploying them with under wages was unjustifiable. The implications
against a respected company like 7 Eleven is likely to cause serious consequences to both the
business, its reputation as well as the entire Retail industry (Abdu, 2013). Allegations of
tampering with evidence to prevent intense consequences and to do such, adoption of violent
methods to suppress the opposition (Webster, 2017). Instances such as beating up of the
employee who tried to complain and protest against the under payment waging system of the
organization as well as bribing of the employees after the allegations were made to restrict
further liabilities was charged against 7 Eleven. The franchisee structure of Australia was
immensely affected due to the frauds and the charges of 7 Eleven came up. The employee
relationship system was also stirred and unstabilized due to such. The sudden incursion of the
enquiry in the stores was instrumental in the revelation of the shocking truth that was striding
under the shadow of the organization.
The reasons for the implications are to establish and generate more business revenue by
cheating the employees who are one of the integrated parts of an organization. Under payment of
wages was a severe blow to the integrity of the employees who impart a crucial part of their lives
in dedication to their work and the organization. The gaps in the non-union form of employment
pattern are one of the advantages that were taken by the employer with the idea that the employer
was the final authority in any instance. It was taken into assumption that the employer has full
authority to assign and relieve any employer from duty on any ground. This was one of the
unethical steps that was adopted by 7 Eleven. The immoral way of suppressing the complaints by
the employees who dedicated their time to the organization was totally irrational and illegal.

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Alleviation of the issues raised against the 7 Eleven case regarding non union form of
employment
All the issues raised against 7 Eleven, one of the reputated retail brands of Australia have
been totally valid and rational since all of the allegations have been justified by the enquiry
commission. The actions that have been adopted by the organization in the suppression and the
generation of revenue by malpractices.
These issues could have been alleviated if proper and rational methods would have been
taken up by the organization related to the wages and the payment framework of the employees.
The organization could have revised a better solution so as to reduce the level of dissatisfaction
or the inconvenience of the employees. Instead, the organization chose to act through violent
methods. The proper filling up of the gaps in the employment relation system could have been
helpful to identify and mitigate the rising escalations.
The breaching of the legal provisions that was passed by the government regarding labor
and employment as another blunder that could have been averted if the organization followed the
protocols that ensure the social integrity of the workers or the employees (Sivaraman & Turner,
2016). The origin of the employees is not one of the strong grounds of expulsion or non-payment
of wages, that can be imposed on the employees. In simple words, as per the legal improvising,
all the employees are subjected to payment of wages irrespective of the origin. Under
Employment Relations every worker is deployed for a certain amount of remuneration,
breaching of this principle is the primary reason for revolt an enquiry. Following the objective of
maintaining a balanced Employment Relation System could ensure a better work culture and
lesser conflicts. It was the sole responsibility of the employer to look after the benefits of the
employees and not to discriminated over them regarding the fees and remuneration. The

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employers should be responsible to look after any benefits or facilities that the employees are
entitled . Following of these methods and protocols could be beneficial for the mitigation of the
issues and could have been helpful for the alleviation of these concerns.
Improvising of bargaining structures in the retail industry to avert clashes and conflicts
The 7 Eleven case is one of the crucial incidents that justifies the injustice that can be
done by an organization, in the retails industry. To avert such incidents in the future regarding
the wages and payment structure, certain methods and principles can be adopted by organizations
that are discussed below (MORAN, 2014).
Every organization should be flexible and should use the liberty to discuss its operations
with the candidates while hiring them for the job. The organization should be clear and precise
about the designation of the employees and the position that they would be working for. Most of
concerns rise due to lack of proper information about the job role (Pekarek & Gahan, 2016).
The hiring and employment process should be done legally to reduced the liabilities and
cut off all the loose ends to prevent any disruption and miscommunication in the future. Official
appointment letter along with the promised remuneration should be clearly stated prevent future
clash related to wages.
Better management and human resources team can be managed to reduce friction in the
workplace related to diversity and work culture, with lesser issues and concerns to rise o grounds
of discrimination. Every organization should follow and formulate its wage structure as per the
industry standards to reduce falsified claim from both ends (Wu & Lin, 2014).

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Conclusion
With the help of this report it can be concluded and justified that all the major allegations
that rose against 7 Eleven was totally rational and valid as per the enquiry commission and the
reports. 7 Eleven adopted several unethical methods to generate revenue and harm its employees
on financial and social grounds. Their security has also been jeopardized under certain instances.
Unethical methods have also been adopted to suppress the revolts that come up due to the non
payment and the breach of norms. With reference to this case the implications have been
analyzed and the respective methods that can be used to alleviate the concerns to reduce such
clashes in the future as well as the methods to improve the bargaining structure in the retail
industry have been provided. The methods to effectively reduce the crisis and escalations is to
maintain an honest regard for the legal procedures and towards the employees who dedicate their
time to the organization.

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References
Abdu, G. (2013). Analysis of consumer behavior affecting consumer willingness to buy in 7-
eleven convenience store. Universal Journal of Management, 1(2), 69-75.
Bray, J. R. (2013). Reflections on the Evolution of the Minimum Wage in Australia: Options for
the Future.
Briton, B. (2015). 7-Eleven scandal: The tip of a low-wage iceberg. Guardian (Sydney), (1705),
1.
Endo, G. (2014). How Convenience Stores have Changed Retail and Distribution in Thailand?:
A Comparative Business History of 7-Eleven Stores in Japan and Thailand.
วารสารญี่ปุ่น
ศึกษา (Japanese Studies Journal), 31(1), 87-106.
Grasso, M. (2015). The risks of underpayment. Australian Veterinary Journal, 93(1), N22.
Li, J., Cooke, F. L., Mu, J., & Wang, J. (2016). Underpayment of wages and wage distortion in
China: an empirical assessment of the 2003–2008 period. Journal of the Asia Pacific
Economy, 21(1), 26-52.
MORAN, L. J. (2014). CHAPTER ELEVEN MANAGING THE “CRITICAL
INDEPENDENCIES”. Law and Popular Culture: International Perspectives, 195.
Pekarek, A., &Gahan, P. (2016). Unions and collective bargaining in Australia in 2015. Journal
of Industrial Relations, 58(3), 356-371.

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Robertson, S. (2013). Campus, City, Networks and Nation: Student‐Migrant Activism as Socio‐
spatial Experience in Melbourne, Australia. International Journal of Urban and Regional
Research, 37(3), 972-988.
Sivaraman, G., & Turner, P. (2016). The 7-Eleven wages scandal: The need for law
reform. Precedent (Sydney, NSW), (135), 53.
Webster, J. (2017). More than underpayments and civil penalties–Taking a strategic approach to
regulatory workplace relations litigation. Journal of Industrial Relations,
0022185617705816.
Wu, S. I., & Lin, H. F. (2014). The correlation of CSR and consumer behavior: A study of
convenience store. International Journal of Marketing Studies, 6(6), 66.