CCDP60008 | FWO 7 - ELEVEN INQUIRY - Report
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The Univetrsity of Melbourne
Research Method (CCDP60008)
Added on 2020-03-04
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CCDP60008 - The report is based on an inquiry from FWO Seven-Eleven Enquiry. In which we will discuss the following topics: the reasons for the FWO investigation, the validity of records, employee participation, visa holders, and customer rights protection.
CCDP60008 | FWO 7 - ELEVEN INQUIRY - Report
The Univetrsity of Melbourne
Research Method (CCDP60008)
Added on 2020-03-04
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Running head: THE FWO 7-ELEVEN INQUIRY iThe FWO 7-Eleven InquiryStudent’s name and numberInstitutional affiliationWord count: 2501
THE FWO 7-ELEVEN INQUIRY iiTable of ContentsIntroduction................................................................................................................................1Reason for the FWO Inquiry......................................................................................................1Findings......................................................................................................................................2Validity of records..................................................................................................................2Employee participation...........................................................................................................2Visa-holders............................................................................................................................3Exploitation complicity..........................................................................................................3Gaps in the Australian ER system..............................................................................................3Protecting the rights of workers.............................................................................................4The implications of the inquiry for the regulation of ER in Australia.......................................5Franchise brand......................................................................................................................5Employee dissatisfaction........................................................................................................5Liability..................................................................................................................................6Conclusion..................................................................................................................................7Bibliography...............................................................................................................................8
Running head: THE FWO 7-ELEVEN INQUIRY 1The FWO 7-Eleven InquiryIntroductionThe Australian Fair Work Ombudsman made an inquiry regarding the underpayment of wages in June 2014 as was committed by the 7-Eleven Australia. Similarly, the FWO inquired into the falsification of the records of workers regarding their employment. The Ombudsman allegations of concern can be defined as systematic non-compliance of 7-Elevenwith the country’s workplace laws[ CITATION Sim16 \l 1033 ]. The ombudsman found that several 7-Eleven franchisees falsified employment records deliberately to facilitate the underpayment of remunerations. However, the inquiry discovered that the firm’s approach never detected or addressed the issues of non-compliance adequately. The commission accused the organization of intimidation, threats, and retaliation against the underpaid employees[ CITATION Sim16 \l 1033 ]. The Senate inquiry also found that workers were intimidated and beaten[ CITATION Nao16 \l 1033 ]. Based on the significance of the 7-Eleven inquiry, this paper conducts an assessment regarding the company’s compliance with industrial relations laws like pay and conditions.Reason for the FWO InquiryThe Fair Work Ombudsman had received various complaints regarding 7-Eleven’s compliance with the industrial relations laws since 2008. It had emerged that the employees of the company had raised concerns about the “significance underpayment of wages”[ CITATION FWO16 \l 1033 ]. The systematic of non-compliance with the laws was a grave issue that the FWO could not compromise. The FWO linked the low payment to false employment records. Given the continued allegations regarding the franchisees’ noncompliance with the workplace laws, the FWO identified about eight issues [ CITATION Sue16 \l 1033 ]. The FWO discovered that the franchisees had a history of noncompliance. Since 2008, the FWO received regular reports from different stakeholders, especially employees regarding the significance underpayment of wages[ CITATION AGF16 \l 1033 ]. With the inaccurate records, the company has managed to underpay the workforce against the federal workplace laws. For instance, the firm reduced the working hours recorded. Through this strategy, the employer wanted to indicate that it paid its workers higher rates than the actual payment.The FWO had gathered intelligence and information regarding the allegations of underpayment and mistreatment of workers[ CITATION FWO16 \l 1033 ]. The inquiry was to examine the franchisees’ operating model thoroughly. Through the inquiry, the FWO would
THE FWO 7-ELEVEN INQUIRY 2resolve the individual requests of employees as the company failed to address noncomplianceissues, network, and supply chain [ CITATION Sue16 \l 1033 ]. The Fair Work Act provided the rationale for the FWO inquiry because the allegations could have been contrary to this Act. The inquiry was purposeful, as the Fair Work Ombudsman wanted to identify the basis of allegations relating to the serious noncompliance[ CITATION AGF16 \l 1033 ]. The FWO wanted to assess the responsibility of the firm’s head office in the issue and the role of its operating model in promoting the unlawful practice.FindingsThe FWO launched the investigation into the issues and allegations raised by the workers and related stakeholders. In its effort to uncover the truth, the FWO made unannounced visits leading to the following outcomes.Validity of recordsUpon conducting the site visits, the inspectors of FWO reviewed and compared the pay records, CCTV footage, the interview records, and the time records were obtained. The inspectors made follow-up calls and called employees for interviews upon visiting the site[ CITATION Cla16 \l 1033 ]. The move ensured the inspectors verified the information provided. Through thorough testing and reviewing of evidence, the inspectors identified various inconsistencies regarding the employee paid rates, conditions of work, time records and rosters[ CITATION Dav161 \l 1033 ]. The Fair Work inspector discovered the presence of inaccurate records in the company. The FWO found that most stores had inaccurate records and promoted significant underpayments. With inaccurate records, it made it difficult for the inspectors to identify the unmet entitlement. In fact, the investigated stores excluded specialist payroll provider mandated in processing pays.It was unfortunate that 7-Eleven used manual methods in processing wage payments. The company’s accountants entered the hours worked manually into the company’s payroll system. During the manual entry system, the officers could enter different penalty hours but fail to enter the rate to be paid[ CITATION Cla16 \l 1033 ]. These system parameters affected the franchisees in making proper payment because inaccurate records were manipulated thus affecting the payroll system[ CITATION Dav161 \l 1033 ]. The misleading and false records contravened the fair work regulations. The production of such records affected the employees. The FWO found it difficult to assess the employee entitlement accurately. The inquiry discovered that employers decided for workers on their actual rate of pay ($10-$17) per hour.
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