• Withers told a Senate Education and Employment References Committee public hearing that the reputational damage to the brand and the company resulting from underpayment of staff by franchisees had been considerable.
    Withers told a Senate Education and Employment References Committee public hearing that the reputational damage to the brand and the company resulting from underpayment of staff by franchisees had been considerable.
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Both the CEO and chairman of 7-Eleven, which has been at the centre of a wages scandal, have fallen on their swords.

Founder and chairman Russ Withers and chief executive Warren Wilmot both resigned last week, with deputy chair Michael Smith to take over as chairman and Bob Baily appointed interim CEO.

Withers signed a licence agreement with 7-Eleven in the US in 1976 to bring the convenience chain to Australia.

The first store opened in 1977, and Australia now has 620 7-Eleven stores.

Last month, Withers told a Senate Education and Employment References Committee public hearing that the reputational damage to the brand and the company resulting from underpayment of staff by franchisees had been considerable.

“I want to stress that this has been highly embarrassing, and I apologise unreservedly to any worker that has worked in a 7-Eleven store who has not been paid correctly,” he said.

Withers also said the 7-Eleven system does not rely on the underpayment of franchisee staff in order to be viable.

“38 years of successful operation in the convenience store business reinforces this,” he said.

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