The wage scandal involving Australia’s largest convenience store empire 7-Eleven, which operates over 600 stores nationally, is only the tip of the iceberg when it comes to the systemic rip off of workers by businesses, large and small. The illegal theft of wages by 7-Eleven was quite simple, with the full knowledge and encouragement of head office; employees were ripped off by being paid a paltry 50% of their wage entitlement. Work 40 hours a week and we’ll pay you for 20, rather simple I’d say. These stores are non union operations staffed by students and others, mostly from the Indian sub continent.
Just how far, and how deep, does this blatant illegality go in our society? How many 7-Eleven type businesses are there operating in this convenience world of ours? Late night petrol stations, car washes, fast food outlets, these types of business are everywhere, and I dare say ripping off employees at will. A couple of examples, I know the young Indian chap at my local service station at night, told me he makes about $10/hour, casual, been held up three times. A bloke I spoke with recently on the dole, was offered a job delivering TV’s from 7.30am till about 7pm for a large well known store chain, offered a $100/day cash in hand, when he questioned it, was told “That’s on top of your dole!” My brothers Turkish mate working in a car wash for cash, being underpaid.
Unfortunately, with no union to support them, and having little in the way of skills many venerable people are forced to accept these illegal conditions from rip off employers who are out to exploit their situation to the fullest.

Paul, it common for OS workers to pick strawberries for $10-$15 per hour, not because that's what they think they are worth, but because they know that if they demand $17-20 plus penalty rates just because the berries didn't take the weekend off they would end up like the locals with no jobs.

It's not so much a case of farmers wanting more, it's yet another case of the consumer setting the prices once again and, with the ever available option of frozen imported available, prices for fresh fruit are at a point whereby without cheap labor they are not worth growing, let alone picking.

We have this weird wage system here whereby wages, (which like it or not include super) usually increase far more than the cost of living and, at some point it must end in tears. Perhaps this end has arrived.

You choose mate, a wage or no jobs, it really is your call!

Our unemployed youth won't get out of bed anymore, partly because $10 an hour to them is an insult, as well as the fact that our over generous welfare systems makes sure they don't have to.

That is one thing that will change, but perhaps we need labor to find the bottom first.

People get ripped off because they can, it’s human nature. And nothing to do with can’t afford not to. 457 visa’s need to be discontinued. Why have 457 visa’s when we have 6.5 % unemployment. For some reason the Conservatives think it’s a good idea.
Rechtub refuses to see that ripping off workers is against the laws of work. He wants it to be the normal thing to do.
While the law says that is what must be paid anything else is against the law. Why risk being prosecuted and fined.
If what you have is not viable get out of it and grow something that is. To flout the law is in no ones interest.
Australia has hit rock bottom, there is no need for you to wait any longer. With 0.2% growth for the last quarter we are on a collision course for a recession. So much for Jobs and Growth. This lot can not handle anything. We need an election as soon as possible, to get back on an even Kiel.

Paul,

As far as employees being ripped off (against the law, apart from the natural disgust any decent person should feel), I have to say that Australia is much too weak in enforcing laws, and should do what the Americans do and jail any business owner who defrauds his employees; and vice versa, of course.

I would feel great satisfaction to see, on TV, such employers being taken to court in handcuffs and waist restraints like all other criminals, as they are in America.

But, with the Australian case depicted on Four Corners you fail to mention that the victims, all foreign students, were complicit in their own torment. They knowingly broke their work conditions as foreign students - 20 hours per week - by acquiescing to the offer of getting their $200 or whatever per week over a longer period. When they complained about their low hourly pay, they were threatened with deportation by their employers, who would be fined a mere $1,000 if the poor old students did spill the beans.

Now, I fully accept the premise, until our gutless politicians do something about this rip off, that it would be very hard for a young student, far away from home and needing some income to complete his studies, would find it hard to stand up to employers who are no more than thieving thugs. The people appearing on Four Corners seemed to be nice young blokes who would not be used to such skuldugerry.

However, the law must be enforced for the benefit of all, and the successive governments have not done that.

sad when corrupt employers rip off workers, even sadder when unions and others sucking on the public purse rip off the taxpayer. There are huge numbers of these. How many flew to CopenHagen?

Real life lesson no.1.

If you attempt to deny the economic reality of supply and demand, and distort the system with the introduction of artificial price fixing, the system will ultimately fail.

So, which is the real "scandal" here? The imposition of unrealistic minimum-wage laws, or the evasion of those laws by people trying to make a living?

I'm not for a moment suggesting which of those is preferable, merely stating that they are the inevitable consequence of meddling with the basics of economic rationality. If the wage rules had been enforced as they were laid down, there would be fewer 7-11s, and fewer employed people. So, perhaps the outlets themselves didn't deserve to be in business in the first place, and the franchisees and the employees better off on the dole.

Personally, I believe the era of the "convenience" store, with its product pricing levels 20-40% higher than the nearby supermarket, is over. Given that our supermarket duopoly is itself under significant price pressure from Aldi, and possibly Lidl in the near future, the ability to sustain the convenience-store business model is itself questionable.

These "revelations" are more about the death-throes of the 7-11 franchise itself, than about worker rip-offs.