Mumbai is a city of superlatives and the ideal location for the first Indian store from 7-Eleven. Mumbai is also home to Reliance Industries, the largest publicly traded company in India. Reliance Retail Ventures, through its wholly owned subsidiary, 7-India Convenience Retail, holds the master franchise agreement with 7-Eleven to operate stores in Greater Mumbai.
Reliance Retail Ventures is a subsidiary of Reliance Industries. Hot Foods. Snack Food. Ice Cream. Cold Pressed Juices. Wanna become a 7-Eleven Superfan Influencer? Learn More. Find A Store. View All Promotions. Get Rewarded. We got you. Jeet knows a lot of people working at 7-Elevens in Melbourne. He says none of them are getting paid the proper wages. Many are scared to speak up for fear they have breached their visa conditions and will be deported.
Until now, Russ Withers, 68, has managed to escape the public glare. In rare interviews he is portrayed as the son of a grocery store owner and wholesaler, who built a fortune when he went to the United States in and struck a deal to bring the 7-Eleven licence to Australia. Withers shares the spoils with his sister Bev Barlow.
Withers is passionate about equestrian sports. He sits on the board of the Australian Olympic Committee and has held various sporting board seats over the years of sat on the board including Equestrian Australia between and and Team Equestrian Australia - the organisation helps to choose which athletes are picked in the Australian Olympic team.
It is part of a global chain of more than 56, stores in 16 countries. The model originated in the United States, with the US head office sharing gross profits with franchisees on a split. In Australia 7-Eleven head office takes a 57 per cent cut of gross profits, while the franchisee receives a 43 per cent share. Head office pays the rent for the store and also covers the cost of new store fitouts and the maintenance of equipment within the store. If a customer drives off without paying, 7-Eleven head office still counts that as a sale and the franchisee must pay for the full amount the customer did not pay.
Michael Fraser began his crusade when he moved to the Gold Coast two years ago next to a 7-Eleven store and discovered what was going on. He wants to help the thousands of international students being exploited throughout the 7-Eleven franchise system. His friendship with Sam Pendem, who he met at the 7-Eleven store next to his apartment, sparked his interest. Fraser has an IT business and is a consumer advocate. He believes that head office is deliberately turning a blind eye. He has surveyed 60 stores around Australia and has found instances of wage fraud at most stores.
He convinced class action lawyer Stewart Levitt to launch legal action against head office. Stewart Levitt is a Sydney-based lawyer who specialises in immigration law and class actions.
He launched a successful class action for victims of Storm Financial. He has investigated the situation and believes he has a strong case against the Australian head office of 7-Eleven and the US head office. He believes everyone is getting squeezed with staff the ultimate victims. He says head office is the only winner.
After wages and loan repayments, a number of stores are operating at a loss. Levitt has set up a website and is signing up people to join a class action against 7-Eleven. He has pored over franchisee agreements and other company documents including retail reviews and store action plans and believes the business model used by 7-Eleven head office makes it hard for many franchisees to make a profit without trying to reduce labour costs.
The US head office has a well documented history of fostering similar problems, according to Levitt, who notes the US authorities have taken a much harder line on franchisees caught exploiting migrant workers with several prosecuted and sent to jail.
Levitt calls on the Abbott Government to offer an amnesty to international students to come forward and give evidence of wage abuse without fear of being deported. The first raid highlighted serious problems with wage fraud. The second raid was a joint audit by the regulator and 7-Eleven head office in October , with 56 stores in Victoria targeted.
Fair Work won the claim but the couple put their business into administration and the workers have never been paid. In September , Fair Work announced the outcomes of its raid on the 56 stores which found 30 per cent were breaching workplace regulations. Fast-forward four years and in September Fair Work raided 20 7-Eleven franchises across Australia and found 60 per cent were underpaying wages.
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