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.

It is an area I believe Paul where the Greens or other minor parities have the opportunity to harvest votes.

If an employee believes they are being underpaid, and assuming they know about the Fair Work Ombudsman (which should be taught in High School) they can file a complaint after attempting to resolve the matter with their employer.

Straight away at this point I would say that they shouldn't have to attempt to resolve matters with their employer at all, as this may expose them to attack.

Then, if the Ombudsman accepts their complaint, the Ombudsman should not have to disclose the name of the employee, as again, this exposes the employee to attack (e.g. dismissal or a cut in hours, bullying or some other form of prejudice)

Of course, if the employee were to be sacked or similar there are remedies at the hands of another department (not the Ombudsman) but by the time they have all finished fiddling with their pencils, the damage is usually done.

Thus, a small tweak to the Ombudsman service in the form of them not being required to disclose the complaining employee's details would do the trick, along with the power to severely sanction unlawful conduct by employers.

(and I note that often if they are underpaying one employee then they are usually underpaying them all)

Unfortunately, the alp has never sort to remedy this as they want people to join the unions. As for the coalition, they seek to preserve the undeserved position of the wig parasites and regrettably, the workers in between miss out.

THAT is why we need a serious 3rd force in politics.

So doog, if we double the pays for strawberry pickets, and consumers won't pay the inflated price for strawberries, what then?

As for 457 workers, I agree, but many of the 6.5% unemployed won't work, or, they won't work for min wages, or, they won't take on a job, like seasonal work, for fear of not be able to return to the dole life. It's fact.

Sorry rechtub But it is a fact in your mind, if unemployment was 20% you would have the same perception of human beings.

Times move on , if strawberry’s can’t be mechanically harvested you are whipping a dead horse. Be realistic, if you need slave labour to sustain an outdated enterprise it’s time to give the game away.

Picking strawberries was big business in 1950, but now it’s more cost effective to import from Asia. So get with it and grow something sustainable for the times.

That is nothing new it will continue to evolve,. Wages are not set by outdated unsustainable growers, they are set to reflect the times we live in.

You can not have the status quo forever, you must evolve and become sustainable. If your case for slave labour is correct.

Posted by *RehcTub* Thursday, 3 September 2015 7:13:29 PM

" ... but many of the 6.5% unemployed won't work, or, they won't work for min wages, or, they won't take on a job, like seasonal work, for fear of not be able to return to the dole life. It's fact. ... "

You spout this clap trap out like your brain can't grow any more.

That figure of 6.5% is a misnomer as it understates the issue of the under employed, among other things. Meaning the unemployment situation is worse ..

And *RehTub* - Human Services has teeth and when a job comes up at the job centre, a person is required to take it whether they like it or not. Any trouble, and they'll go in the bin.

You are disconnected from reality.

Unemployment is a failure of the system. And too many people get paid too much to do too little. Australia has a big GDP and what, not quite 25 million people (but more than its fair share of parasites)

By propping up antiquated businesses you are interfering with the Free Market, but then all they really know here about Free Market is how to make up there own inflated price on top of their inflated opinion of themselves. So much is not Free Market at all but rather turns on silly little rules.

I'll have Solar and Smart Batteries, and you can take your filthy coal fired over priced electricity and insert it where the Sun don't shine.

Forget the strawberry pickers and minimum wages for a moment and have a look at the company 7-Eleven which prompted me to start this little discussion. From their own website;

7-Eleven a private company owned by the Withers and Barlow family operating a franchise system.
Been operating in Australia since 1977, now has 615 stores Australia wide, Generates over 185 million transactions yearly with sales in excess of $3.6 billion. Worldwide 7-Eleven operates over 55,000 stores, with it beginnings in the USA in 1927.
Sounds like a rather successful operation, both here and overseas, in my opinion. And from my observation you certainly pay for the "convenience" when you shop in their stores. Except on a Wednesday when you can partake of the $2 sandwich sold to you by the $2 employee, features prominently in their advertising the $2 sandwich that is, not the $2 employee, he doesn't get a mention.
Who is sitting on the top of all this, the multi-millionaire Russ Withers, Mr Withers, who lives in a mansion in the Yarra Valley, was 64th on the BRW Rich List this year with an estimated fortune of $787 million. Now for the crocodile tears “Yes, there have been a number of cases that have been underpaid and the ones that we know about have been rectified.” So said Mr Withers.
To say "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?" Seems Mr Withers managed to "make a living" arather good living, like the butcher who tells his new employee; "Don't forget, get your wages through the scales!"

Dream on, I have said for years that paying people on the dole cash is half the problem. As for having to take a job, sure, they turn up, they're useless, they get sacked, then they go back in the que and wait until their number comes up to be annoyed again. It's a joke because many if these people are DFI's who are constantly drugged off their faces and don't even have to pass a drug test to get their $200 per hour pay. I say that because that's about the amount of time they actually spend doing something about work.

BTW, when you installed your solar did you receive a subsidy, because if you did those filthy coal miners taxes helped pay for that.

People have to come to the realization that the boom has gone and the pay rates, penalty rates and perks they have enjoyed will be short lived, it called life.

Paul, our problem has always been that in the buk of years, wages have always increased greater than CPI.

Smit stands to reasn that if you keep wanting more, yetbthe market does not allow for more, then something has to loose. That something has in a large been small businesses and, as most are now at a point whereby they either cut wages, or close, wages will have to either come down, more so weekend rates fir seven day businesses, or jobs will go.

In fact, I find it rather irresponsible for unions to have demanded such pay rises and conditions, knowing that they would one day lead to this. And you must remember, super is also calculated as a pay rise because that was how it was introduced, as an 'in lue of' payment.

So workers have enjoyed having their cake, but they can no longer enjoy eating it and they simply need to get over it.

The boom is over, Sunday is just another day and unless consumers willingly part with about 25% extra fir their goods on Sundays then there is no saving the situation other than to remove the unworkable rates.

Retail and hospitality, as well as tourism are what they have now become and workers will either have to accept that Sunday is a normal day, or find work in another industry and good luck with that I say.

It's called evolution my friend.

God it's time you lefties grew up. We are putting ourselves out of business, & damn quickly too.

I have worked for less than award wages on a number of occasions, as has my lady.

We worked for a Whitsunday island resort for about 4 years, with the odd short break. We were paid something like the award for a 36 hour week standard time, but worked an average of 28 days a month. My day was usually from 7 AM, with the morning ferry run to the mainland, to 6 PM, with the last one back. There might be a lunch break, or there may not.

Hers could run from 7 AM to 9.30 PM when she was running the dining room, with a couple of breaks of a couple of hours. She usually spent these asleep on the beach. You should have seen her tan. She worked a little less when pregnant. Usually running the office from 8 AM to 5.30 PM, but still 6 or more days.

We loved it, & as we don't drink, saved a goodly sum, with no time to spend money.

We also ran a couple of mainland & an island based cruise boat operations. We rarely got a consecutive 24 hours off, but loved the life.

Back in the 70s & 80s no tourist operation could pay award & penalty rates, & stay in business. Ansett paid by the book at Hayman Island, losing a fortune, helping in their ultimate bankruptcy. South Molle also tried when owned by Telford, but also went broke.

Smart people settle for what they can actually earn for an employer. Stupid people, like car industry, or Ansett workers, demand award & penalty rates, & end up with no job.

Hassy, were you an employee of the Whitsunday Island, 7-Eleven? Sound like you were. As for Whitsunday Island resorts, check out their prices, a random check of a Whitsunday Island Resort, 5 nights from $2790 pp, an arm and a leg! Gee, and they have people with a "begging bowl" mentality working for them.

Butch, the only ones complaining about Sunday rates are those overprice small businesses, who simply can't compete with the big blokes. Aldi's have got sausages at $3.99/kg 7 days a week, what's your price?
Interesting. Aldi have just opened in a new store in my area, in the same shop once operated by IGA Supermarket. When IGA were in there you could have fired off a shot gun and not hit anyone, now Aldi's got the place packed. Aldi pay above award rates and penalty rates on Sundays. Who said price don't matter?

I guess it helps to be stupid, if you want to hold a lefty point of view. It is obviously a prerequisite to have no ability to add 2+2.

You Paul, have no idea of the costs involved in running any sort of resort. Running one on an isolated island is even much more expensive.

I have written the budget for a small resort, & knew it was impossible for it to make money, even with cheap labour. Just the cost of running a power house, staffing it, & transporting fuel to it can chew up large chunks of revenue, as can supplying water.

Daydream Island once had a 200Ft ship that did nothing but carry water from Bowen to the Island, when they could not find an engineer capable of running their desalination plant successfully.

Just running an island's boats is expensive. A couple I ran for South Molle had annual fixed costs of $5,000,000, back in the 80s.
one million for fuel;
one million for maintenance;
one million for crew wages;
one million in insurance;
one million in interest on the borrowings to buy them,
& that would be for a good year with nothing exceptional going wrong. It is probably double that today.

Yep, nothing like ignorance to fuel lefty claims & bulldust.

Hassy, given what you say "I have written the budget for a small resort, & knew it was impossible for it to make money, even with cheap labour." We should get the shonky resort operators out of the place. They can take those shutter bug, nature trampling tourists with them, and leave the place to what it should be, a natural wilderness, and not some rich guys garbage dump!

Paul1405,

Not surprised that the Greens are opposed to tourism. Or that they couldn't care less about small business and people outside of Sydney and Melbourne.

This is the form of the Greens,

<Unions bankroll IR-shy Greens

Union donations to the Greens.

The Greens, who are standing in the way of the Coalition’s two key industrial relations bills, ­received more than $500,000 in the 2013-14 financial year from ­unions, including the militant Construction Forestry Mining and Energy Union and the Maritime Union of Australia.

The Australian Electoral Commission’s latest financial disclosure returns reveal five ­unions, led by the Electrical Trades Union, contributed a total of $567,766 to the Greens in 2013-14. The party’s Victorian branch received the lion’s share of union contributions before the ­November 2014 state election, with the ETU making three separate payments totalling $360,766. The ETU’s largest ­individual contribution was $300,000.

The Greens remain opposed to two previously rejected pieces of legislation that raise governance standards in trade unions and revive the Australian Building and Construction Commission, which the government will test again when parliament ­resumes next month. If rejected a second time by the Senate, both bills would ­provide the government with a trigger for a double-dissolution election on combating union militancy.

The CFMEU, regarded as the most militant union in the country and facing claims before the trade union royal commission it extorted more than $150,000 from Canberra employers, contributed $145,000 to the Greens’ ACT, South Australian and Victorian branches...>
http://www.theaustralian.com.au/national-affairs/industrial-relations/unions-bankroll-ir-shy-greens/story-fn59noo3-1227442058090?sv=944a99033993188bf8b30c18b024b7

and

<The Trade Royal Commission in Canberra has revealed serious allegations of intimidation and corruption against the CFMEU. Those who have spoken out say it's worth the risk if it cleans up the industry.>
http://www.abc.net.au/7.30/content/2015/s4306632.htm

The Royal Commission will meet in Queensland next. Good!

Abbott is devastating Australia, religious guidance has infested his ambitions of being a leader of a political party. Is the end coming to a head.

The downward spiral of a govt; is not in Australia’s best interests, as a new govt; may have too much advantage. The tactics of Abbott trying to take control of all portfolios has caused the downfall of an elected govt; to a point of desperation, and bad politics.

Rushed free trade deals, submarines promised to Japan for free trade gifts, a host of mishaps, and now wanting to get involved into an extended war.
This PM has done everything in his power to discredit the only alternate govt; we have, but the voters are not buying into his tactics. Is it time for the governor general to step in and call an election.
We are in a far worse shape as a nation now than we were two years ago. Our longer term viability as a developed country is in the balance. The worst term of govt; in history with 12 months still remaining.

The coalition were once well balanced with Turnbull as leader but got knifed by Abbott, climate change has come a last priority, he somehow wants to protect the worst polluters in Australia. Nothing has added up to any kind of sense. Let there be an election so certainty can be reinstalled, for all.

110 Billion $ has been squandered for what, certainly none spent on jobs, Growth hit .2 %. Thailand is doing much better. There must be change now

Paul 1405>> 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.
Just how far, and how deep, does this blatant illegality go in our society? <<

Ask the unions and Bill Shorten how far it goes Paul. Shorten who agrees with whatever his fuehrer says even though he doesn’t know what the fuehrer said colluded with the employers to dud his own union members.

I can cop the greedy owners shafting the plebs more so than their paid representatives duding them.

Doog>> Abbott is devastating Australia, religious guidance has infested his ambitions of being a leader of a political party. Is the end coming to a head.<<

............and homosexual marriage is the issue the left want to make a national intercourse.

Doog>>The downward spiral of a govt; is not in Australia’s best interests, as a new govt; may have too much advantage. The tactics of Abbott trying to take control of all portfolios has caused the downfall of an elected govt; to a point of desperation, and bad politics.<<

I am no fan of the current Liberal coalition................but the Rudd/Gillard/Rudd government inherited a huge surplus and within one year was borrowing to sustain their populist rubbish policies.......we all got a large screen TV, insulation batts, pre fab school buildings and covered outdoor learning areas and our kids still fall behind Romania in grammar and math.....Then they come up with Gonski........and now we pay $100 million a day in interest.

Abbott did not make that a reality, the imbecile populist Labor caucus did.

Abbott has no mandate in the Senate so his bills are tatters of the intended policies...............If Abbott has any integrity he will re submit the bills to the Senate then go for the double dissolution. But I think he likes being king rather than being effective.

Homo is up to the people that want it. Abbott's religion is in the way.
He told us that religion would not come into decisions.

Howard sold off everything that was not bolted down, The surplus as you say got eaten with his forward estimates.

What we need now is stimulus, not oppression. Abbott just can't do it.
Everything he has touched has turned to furtiliser.

Abbott has already got the ingredients for a DD but will not use it. He needs to be deposed.

You can't blame the senate, if his policies were any good there would be no problem.

Turnbull should never have been shafted.

Doog, Howard certainly sold off our gold when the price was rock bottom............

"Our unemployed youth won't get out of bed anymore, partly because $10 an hour to them is an insult"

$10 an hour is not an "insult". It's effectively the same as not having a job at all, when you factor in transport, maintaining a set of "job clothes", other costs associated with holding down a job. $10 is only a hair different from working for free.