1. Review Of Australian Newspaper
This article mainly contains a critical review of the case of underpayment of the employees. This issue was clearly brought in the forefront in the Australian Newspaper. The company named seven- Eleven had their head their head office in Australia. They had many franchisees in different parts of Australia. An allegation has been raised against them that they were not efficient enough in playing their roles. Many complaints has been registered against them that they did not pay the wages to the workers. They exploited the workers for a long time and did not pay them regularly.
The chairperson of the company Mr. Russ Withers commented this as a minor issue (Fraser, 2016). He claimed that the company no way is responsible for this fault. The franchisee holders of the company did it and in no way the head, office is responsible for it. According to the chairperson, it was embarrassing for the company to face these types of problem. He however claimed that all the problems should be solved soon. He also promised that all the employees who were deprived of their payments would be given their payments soon. According to the chairperson the franchisee holders did not inform them what they were doing and about all their activities. The head office was not supposed to know what the franchisees were doing and how they tackle the store. In their defense, the Mr. Withers said that they started their stores from zero to six hundred and forty at present (Theaustralian.com, 2017). They had no idea that the workers were not paid for their work, as they blindly believed their franchisees, they had a good relation with their franchisee holders, and they believed them in their face value. However, the chairperson told that it was not a desirable thing that has happened. He assured that all the deprived employees would get their payments, which they deserved soon. The payment of the employees legally was under the franchisee (McIlroy, 2015). The appointment of the employees and their payments all depend on the franchisees. The head office is not officially responsible for the handling of the problems of the employees. In spite of all this, the chairperson assured that he will tackle all this problems personally and he will look into the matter.
From the point of view of the chairperson, he is partially correct (Sivaraman, & Turner, 2016). However, he assured that a separate body will be formed who will look only these matters and solve these matters. He organized for some checks in different stores and the reason behind the underpayment was the cost cutting of the employees. The budget was short to appoint so many employees and this was the main reason told by the owners of the franchisee in Melbourne store. Presumably, it would cost more to the company in order to settle all the dues. Moreover, the reputation of the company deteriorated. While expressing one`s personal view it can be said that under any condition the head office should have looked into the matter. The reputation of the company depends on the service of the company, the products of the company and finally on the dealings of employees (Smith, 2015). There was a refute by Mr. Withers against the chairperson of ACCC Mr. Alan Fels`s on the point that the profits are divided from 57 to 43 percent from head office to franchisee and thus it is the responsibility of the franchisees to pay wages to the employees.
To keep up the reputation the company must look into all the matters properly. The issue that was found in this article had a negative impact. The head office should have looked into the matter so that the problem could not arise. Before the problem raised the head, office should have looked into the matter. A regular watch on the franchisees should have been kept by the head office and a written report should have been submitted to the head office by the franchisees. A proper track should have been kept by the head office regarding the payment of the employees and other official matters as well.
Fraser, M. (2016). Investigating 7-Eleven: Who are the real bad guys?. Griffith Journal of Law & Human Dignity, 4(2).
McIlroy, J. (2015). CPSU launches half-day public service strikes. Green Left Weekly, (1069), 3.
Sivaraman, G., & Turner, P. (2016). The 7-Eleven wages scandal: The need for law reform. Precedent (Sydney, NSW), (135), 53.
Smith, K. (2015). Unite calls for amnesty for 7-Eleven workers. Green Left Weekly, (1069), 3.
Theaustralian.com. (2017) https://www.theaustralian.com.au/business/companies/the-buck-stops-with-us-says-7eleven-chairman-russ-withers/news-story/c446f2f834f4b72748c630a0944ec6b4 [accessed on 7th September 2017]