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'I'm paying their tax': More 7-Eleven workers speak out about 'cash back' scams

Wednesday, 14 Dec 2016 03:11:32 | Mark Willacy

A woman walks into a 7/11 (Seven Eleven) convenient store in Sydney on Monday, July 27, 2009.  (AAP: Paul Miller)

More 7-Eleven workers have spoken out about the so-called "cash back" scam, in which employees are forced to hand back part of their pay to franchisees of the convenience chain.

Key points:

  • Workers say they are being forced to pay back part of their wage to franchisees
  • They say they were threatened with loss of jobs if pay was not handed back
  • 7-Eleven says it does not have enough evidence to prove any allegations of wage fraud

Last month the ABC broadcast covert video of a 7-Eleven employee handing money to her boss in the office of a Brisbane store.

The worker said she was told by the franchisee to pay back thousands of dollars or face losing her job.

Now another former worker has backed up the claims, saying he was forced to pay back thousands of dollars in wages during his time at the same store.

"Everyone [at the store] has to pay back. It's really unfair because I'm paying their tax... and I can barely get through the week with all my bills and food supplies," he said.

'I started stealing money so I could just get by'

The worker said he was sacked after he started taking $20 to $30 a week out of the till to make ends meet.

"At the time, a big bill came in and I had no money left... I couldn't afford food. So I started stealing money so I could just get by," he said.

Workers said the franchisee told them he could not afford to pay the government award rate.

Do you know more about this story? Email investigations@abc.net.au

Another 7-Eleven worker, this time from a Sydney store, told the ABC all the international students who work at the store are being forced to pay up to half of their wage back to the franchisee.

"I have seen them put their money into an envelope, put their name on the envelope and put it into the till or hand it back to the boss," she said.

"[One work colleague] told me that he had no choice, otherwise he would lose his job."

Systemic wage fraud and the underpayment of 7-Eleven workers was exposed by Four Corners and Fairfax Media last year, prompting the company to set up a wages compensation panel.

Scams spreading 'like a virus'

Lawyer Giri Sivaraman from Maurice Blackburn represents more than 100 former and current 7-Eleven workers who claim to have been underpaid.

"The scams are like a virus. They just adapt to different circumstances and regulation," he said.

"These [workers] are very vulnerable people. They are often on short-term visas; they don't know their rights."

After the ABC broadcast the covert video showing a worker, Anna, handing money to the store franchisee, 7-Eleven launched an investigation.

"7-Eleven's investigation into alleged wage fraud at the Brisbane store is continuing, but has been materially hampered by the refusal of the ABC to share their evidence, and the unwillingness of the complainant to come forward," the company said in a statement.

"On the basis of our investigation thus far, and the material published by the ABC, there is currently not enough evidence to prove any allegation of wage fraud to the standard required for 7-Eleven to take action under the law."

More on this story:

The ABC declined 7-Eleven's request to release unedited covert footage to the company, as it would compromise the whistleblower's identity.

The scandal-plagued convenience chain this month signed a "landmark" agreement with the Fair Work Ombudsman committing 7-Eleven "to a range of measures designed to ensure all its workers receive their lawful entitlements".

The agreement also aims to tackle the cash back scams.

Under the new agreement, 7-Eleven says it will continue to keep the names of workers who file underpayment claims confidential.

But that is not enough for some workers who do not see the process as independent.

"None of us have really raised [the cash back scam] with 7-Eleven headquarters because we're all kind of scared that our boss will find out," said the worker from the Sydney store.

"He would be really aggressive and he would yell."

AustraliaPlus


 

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