Amnesty for student-visa workers caught for exceeding work hours limit
Thousands of student visa holders have been exploited by the 7-Eleven chain of stores across Australia, according to a joint investigation by ABC Four-Corners and BusinessDay. A 7-Eleven ‘insider’ on the report alleged that if franchisees were forced to pay the correct wages, at least 140 of the 620 stores would be unsustainable.
The revelations had one of 7-Eleven's most savage critics, former ACCC head Allan Fels posting on a blog that the only way 7-Eleven franchisees could make money was by ripping off their workers. Some reports allege that many workers were paid $10 an hour before tax – well below the award rate of $24 per hour. The reports also allege that the company's own figures suggest up to two-thirds of its stores are underpaying their workers.
Professor Fels has subsequently removed that post and has been appointed to head an inquiry funded by 7-Eleven to investigate the alleged rampant wage fraud and cover-up by the head office.
With both the Labor Party and the Greens calling for a pardon of student-visa workers caught in the scandal, the Abbott government has now announced that it is considering amnesty for these workers.
According to the ABC/BusinessDay report – which revealed the widespread exploitation of 7-Eleven staff – the majority of the company’s staff are foreign students who are only allowed to work for up to 20 hours per week. But most of them work for over twice that amount of time for less than half the award rate. This puts them at risk of deportation for a breach of their visa conditions.
The Shop, Distributive and Allied Employees Association (SDA) – the union that covers the industry – has been accused of failing to protect 7-Eleven employees. The SDA has now reportedly set up a hotline and website to help 7-Eleven workers make claims against the company.
7-Eleven has agreed to buy out any franchisees who want to sell their stores since the exposé on the retailer’s exploitation was publicised.
It is reported that 7-Eleven generated earnings before interest and tax of $143 million in 2015, helping boost the wealth of co-owner and chairman Russ Withers and his sister Bev Barlow to $1.5 billion.