The 7-Eleven convenience store company has been accused of systemic underpayment of workers during a Fair Work Ombudsman review of the company.
Some of its staff have allegedly been paid as little as $10 an hour by its franchisees while working shifts at night, on weekends and during public holidays.
The company says it will establish an independent panel to review its staff payments, and it has also proposed an exit option to franchisees who want out.
“This doesn’t let off the hook any franchisees doing the wrong thing, because we will pursue them to repay any money owed to former or present staff,” 7-Eleven CEO, Warren Wilmot, said.
“The viability of the 7-Eleven system is in no way, never has been and never will be, dependent on franchisees underpaying their staff,” he said.
He said he disputed there is insufficient financial viability in a system that delivers on average net profit of $165,000 per store, and year-on-year growth of more than nine per cent.
Even so, he said, the company has committed that any existing franchisee who no longer wants to participate in the system will be refunded the franchise fee paid, and be given help to sell any store where a goodwill payment has been made.
“What has happened, has happened on our watch, and we are a company with a proud heritage and a strong reputation, we cannot allow the few to taint the achievements of the many.”
