7-Eleven Wage Fraud and Exploitation
Added on 2020-02-24
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Running head: ADVANCED STUDIES IN INDUSTRIAL RELATIONSAdvanced Studies in Industrial RelationsName of the Student:Name of the University:Author’s Note:
1ADVANCED STUDIES IN INDUSTRIAL RELATIONSTable of Contents1.0 Introduction................................................................................................................................22.0 Summary of 7-Eleven Inquiry...................................................................................................22.1 Reason for Inquiry.................................................................................................................22.2 Major Findings in Inquiry......................................................................................................23.0 Gaps in Australian ER system...................................................................................................43.1 Gaps in Minimum Wage........................................................................................................43.2 Gaps in Working Arrangement..............................................................................................43.3 Gaps in Working Rules for International Students................................................................53.4 Gaps in Human Right Act......................................................................................................54.0 Implications of Inquiry..............................................................................................................64.1 Compliance with Fair Work Ombudsman.............................................................................64.2 Effective Governance Arrangement......................................................................................64.3 Reviewing Operating Model..................................................................................................74.4 Setting Up Staff Consultative Forum....................................................................................75.0 Conclusion.................................................................................................................................7References........................................................................................................................................9
2ADVANCED STUDIES IN INDUSTRIAL RELATIONS1.0 IntroductionIndustrial relation defines the relationship between the employers and employees of anindustry, which is defined by industrial laws. This study will provide a summary of 7-Eleveninquiry, which has been done by Fair Work Ombudsman. Moreover, the study will discuss themajor findings in the inquiry. The study will also critical analyze the gaps in the Australian ERsystem, which the inquiry of the Fair Work Ombudsman has revealed in terms of the role ofunions and states. Furthermore, the study will also discuss the implications of this inquirytowards regulating ER in Australia, which is not only for 7-Eleven, but also all kinds oforganizations. 2.0 Summary of 7-Eleven Inquiry2.1 Reason for InquiryFair Work Ombudsman has conducted an inquiry towards looking into the employmentpractices of 7-Eleven, where the organization seems to make non-compliance with theemployment relation (ER) laws of Australia. This inquiry was conducted with the allegations ofsystematic non-compliance of federal workplace laws. Fair Work Ombudsman had demonstratedsignificant engagement in this inquiry from 2009-2014 and expected to observe significantimprovement over the compliance (Fair Work Ombudsman, 2016). Based on the continuingconcern and intelligence, Fair Work Ombudsman began strategic inquiry into the sample of 7-Eleven stores across NSW, Victoria and Queensland. This inquiry had been performed over 20stores of 7-Eleven across Australia. The intension behind such inquiry was to further theopportunities towards indentifying the root causes of non-compliance so that the statutory agencycan approach 7-Elven for addressing the issues. The statutory agency also conducted this inquiryfor providing support to the franchisorsthrough advising them in ensuring high level ofcompliance with employee relation. Moreover, the purpose of this inquiry is to identify theethical and legal issues associated with the 7-Eeven employment practices (Fair WorkOmbudsman, 2016). Such inquiry also forces 7-Eleven towards complying with the employmentrelation practices.
3ADVANCED STUDIES IN INDUSTRIAL RELATIONS2.2 Major Findings in InquiryFair Work Ombudsman has initiated legal proceedings against 7-Eleven retail store ofAustralia, which allegedly underpaid 2 foreign employees approximately $50000. For more than7 years, the organization has been consistently alleged with the underpayment to the migrantemployees. According to Ferguson and Danckert, (2016), 7-Eleven has been alleged with theunderpayment to the migrant employees having visa holders, where the workers are often paidwith a rate of $10 an hour. However, the employees were actually entitled to get paid normalhourly rates of more $22 an hour and up to $29.27 an hour for some public holidays, weekendand overtime shifts. On the other hand, Fair Work Ombudsman, (2016) opined that 7-Eleven hasalso been alleged with falsifying the payroll of the employees. The employees have complainedthat the wage structure demonstrated in the payroll is quite higher than the amount actually paidto them. Moreover, half the working hours has been recorded in the payroll. Furthermore, Karp,(2016) opined that 7-Eleven is also forcing the employees work for longer hours, which is quitelonger than the normal working hours. The organization is mostly mistreating the migrantworkers among them some are the students from the foreign countries. According to Tham, (2016), most of the employees in 7-Eleven stores are typically maleinternational students having their visas with them. Such international visa holder students aremostly affected by the unethical employment practices of 7-Eleven. Moreover, the organizationis deliberatelyexploiting such migrant workers, which is severely hampering the healthcondition of s457 visa holders and education life of foreign students visa holders. On the otherhand, ABC News, (2015) opined that most of the migrant employees are from non-Englishspeaking backgrounds specifically from Pakistan, China and India. Generally, such employeeshave very or no knowledge regarding the employment relation of Australia. Therefore, theorganization can make them stupid and force them to work more than the normal working hours. International students are normally allowed to work up to 40 hours a fortnight, while theyare studying. However, the organization is forcing many of the migrant students to work up to50 hours a week. It is actually hampering their physical condition due to longer working hours.Furthermore, the students are not also allowed to complain such unethical organizationalbehavior with any statutory and legal authorities. Moreover, 7-Elevn is threatening the studentvisa holder with the fear of cancelation of their visas, if they complain the unethical behavior
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