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====Class actions==== In August 2015, [[Fairfax Media]] and the [[Australian Broadcasting Corporation|ABC's]] ''[[Four Corners (Australian TV program)|Four Corners]]'' programme reported on the employment practices of certain 7-Eleven franchisees in Australia.<ref name="smh1">{{cite news |last1=Ferguson |first1=Adele |author-link1=Adele Ferguson |last2=Danckert |first2=Sarah |last3=Klaus |first3=Toft|title=7-Eleven: Investigation exposes shocking exploitation of convenience store workers |work=[[Sydney Morning Herald]] |date=August 29, 2015 |url=http://www.smh.com.au/business/workplace-relations/7eleven-investigation-exposes-shocking-exploitation-of-convenience-store-workers-20150828-gja276.html |url-access=subscription |access-date=October 2, 2015 |archive-url=https://web.archive.org/web/20151002080050/http://www.smh.com.au/business/workplace-relations/7eleven-investigation-exposes-shocking-exploitation-of-convenience-store-workers-20150828-gja276.html |archive-date=October 2, 2015 |url-status=live}}</ref> The investigation found that many 7-Eleven employees were being underpaid at rates of around [[Australian dollar|A$]]10 to A$14 per hour before tax, well under the legally required minimum [[Industrial award|award rate]] of A$24.69 per hour.<ref name="smh1" /> The ''Four Corners'' investigation into 7-Eleven won a [[Walkley Awards|Walkley Award]] in 2015.<ref>{{cite web|url=http://www.theage.com.au/victoria/age-journalists-recognised-at-walkley-awards-20151203-glf3dc.html|title=Age journalists recognised at Walkley awards|date=December 3, 2015|website=[[The Age]]|access-date=August 30, 2016|archive-url=https://web.archive.org/web/20161105120833/http://www.theage.com.au/victoria/age-journalists-recognised-at-walkley-awards-20151203-glf3dc.html|archive-date=November 5, 2016|url-status=live}}</ref> Franchisees underpaying their staff would typically maintain rosters and pay records that appeared to show the employee being paid the legally required rate; however, these records only included half of the hours the employee actually worked in a week. Employees were then paid on the basis of these records, resulting in them effectively being paid half the legally required rate.<ref name="smh1" /> It was also reported that workers were often not paid loadings and [[penalty rates]] that they are legally entitled to, for working overtime hours, nights, weekends, and public holidays.<ref name="smh1" /> After these reports came to light and received widespread attention, some employees had alleged to Fairfax Media that they had begun to be paid correctly through the 7-Eleven payroll system; however, they were then asked by the franchisee to pay back half their wages in cash.<ref>{{cite news |last=Ferguson |first=Adele |authorlink=Adele Ferguson |title=7-Eleven: Workers caught in cashback scam |work=[[Sydney Morning Herald]] |date=September 8, 2015 |url=http://www.smh.com.au/business/workplace-relations/7eleven-workers-caught-in-cashback-scam-20150907-gjh0kt.html |url-access=subscription |access-date=October 2, 2015 |archive-date=October 11, 2015 |archive-url=https://web.archive.org/web/20151011095559/http://www.smh.com.au/business/workplace-relations/7eleven-workers-caught-in-cashback-scam-20150907-gjh0kt.html |url-status=live}}</ref> 7-Eleven subsequently announced they would fund an inquiry to investigate instances of wage fraud. The inquiry was conducted by an independent panel chaired by former [[Australian Competition & Consumer Commission]] chairman [[Allan Fels]], and with the support of professional services firm [[Deloitte]].<ref>{{cite news |last1=Ferguson |first1=Adele |authorlink1=Adele Ferguson |last2=Danckert |first2=Sarah |title=7-Eleven: Allan Fels to lead wage scandal inquiry |work=[[Sydney Morning Herald]] |date=2015-09-03 |url=http://www.smh.com.au/business/workplace-relations/7eleven-allan-fels-to-lead-wage-inquiry-20150903-gjehxu |url-access=subscription |access-date=October 2, 2015 |archive-date=October 16, 2015 |archive-url=https://web.archive.org/web/20151016074440/http://www.smh.com.au/business/workplace-relations/7eleven-allan-fels-to-lead-wage-inquiry-20150903-gjehxu |url-status=live}}</ref> In September 2015, chairman Russ Withers and chief executive Warren Wilmot announced they were resigning from the company. Deputy chairman Michael Smith replaced Withers, while Bob Baily was appointed as interim chief executive.<ref>{{cite news |title=Australia 7-Eleven chairman Russ Withers and chief executive Warren Wilmot resign |work=[[The Guardian]] |date=30 September 2015 |url=https://www.theguardian.com/business/2015/sep/30/australia-7-eleven-founder-russ-withers-resigns |access-date=23 October 2020 |archive-date=October 26, 2020 |archive-url=https://web.archive.org/web/20201026091421/https://www.theguardian.com/business/2015/sep/30/australia-7-eleven-founder-russ-withers-resigns |url-status=live}}</ref><ref>{{cite news |last1=Ferguson |first1=Adele |authorlink1=Adele Ferguson |last2=Danckert |first2=Sarah |title=Russ Withers resigns from 7-Eleven board, CEO Warren Wilmot also stands down |work=[[Sydney Morning Herald]] |date=1 October 2015 |url=https://www.smh.com.au/business/workplace/7eleven-russ-withers-resigns-from-board-ceo-warren-wilmot-also-stands-down-20150930-gjxw28.html |url-access=subscription |access-date=23 October 2020 |archive-date=October 26, 2020 |archive-url=https://web.archive.org/web/20201026175036/https://www.smh.com.au/business/workplace/7eleven-russ-withers-resigns-from-board-ceo-warren-wilmot-also-stands-down-20150930-gjxw28.html |url-status=live}}</ref> In December 2015, Stewart Levitt of law firm Levitt Robinson Solicitors, who featured prominently in the ''Four Corners'' program, announced a potential [[class action lawsuit]] against 7-Eleven head office on behalf of franchisees who had allegedly been lured into signing on with 7-Eleven by false representations.<ref>{{cite press release |title=7-Eleven Class Action Looms for Disaffected Franchisees |date=December 7, 2015 |publisher=Levitt Robinson Solicitors |url=http://levittrobinson.com/7-eleven-class-action-looms-for-disaffected-franchisees/ |access-date=August 30, 2016 |archive-url=https://web.archive.org/web/20190405023305/http://levittrobinson.com/7-eleven-class-action-looms-for-disaffected-franchisees/ |archive-date=April 5, 2019 |url-status=dead}}</ref> This announcement was made on the same day as a Court finding describing Levvit Robinson's "hellish bullying" of Dr Brendan French,<ref>{{cite news|work = [[Australian Financial Review]]|title = CBA executive awarded $300,000 after 'hellish' bullying|url = https://www.afr.com/companies/professional-services/cba-executive-awarded-300000-after-hellish-bullying-20151207-glhm8f|first = Marianna|last = Papadakis|date = December 7, 2015|access-date = 23 July 2021}}</ref> miring the action in controversy. Also on that day, 7-Eleven offered to pay "the first $25 million of back-pay claims brought by current and former workers. Franchisees would then pay the next $5 million and any payments after that would be split 50-50 between head office and franchisees."<ref name = SMHoffer>{{cite news |first1=Adele |last1=Ferguson |authorlink1=Adele Ferguson |first2=Sarah |last2=Danckert |title=7-Eleven offer $25 million in back-pay as class action looms |work=[[Sydney Morning Herald]] |date=December 7, 2015 |url=https://www.smh.com.au/business/consumer-affairs/class-action-looms-for-7eleven-as-offer-to-pay-25-million-in-back-pay-emerges-20151206-glgimh.html |url-access=subscription |access-date=January 2, 2024 |archive-date=November 16, 2018 |archive-url=https://web.archive.org/web/20181116001522/https://www.smh.com.au/business/consumer-affairs/class-action-looms-for-7eleven-as-offer-to-pay-25-million-in-back-pay-emerges-20151206-glgimh.html |url-status=live}}</ref> Fels "described the $25 million offer from head office as a 'significant step forward'" but added that his panel's investigation would not be effected.<ref name = SMHoffer /> 7-Eleven ultimately paid more than $173 million for "systematic wage theft" to workers employed between 2015 and 2020.<ref name=LW>{{cite news |first=Lauren |last=Croft |title=7-Eleven ordered to pay $98m in class action settlement |website=lawyersweekly.com.au |date=April 7, 2022 |url=https://www.lawyersweekly.com.au/biglaw/34096-7-eleven-ordered-to-pay-98-million-in-class-action-settlement |access-date=January 2, 2024}}</ref> Levvit Robinson was forced to retract misleading statements made in advertising to 7-Eleven franchisees in June 2018 by the [[Federal Court of Australia]].<ref>{{cite web |first=Sarah |last=Stowe |title=7-Eleven class action law firm forced to retract statements |website=franchisebusiness.com.au |date=June 7, 2018 |url=https://www.franchisebusiness.com.au/7-eleven-class-action-law-firm-forced-to-retract-statements/ |access-date=July 23, 2021 |archive-url=https://web.archive.org/web/20210723030257/https://www.franchisebusiness.com.au/7-eleven-class-action-law-firm-forced-to-retract-statements/ |archive-date=July 23, 2021 |url-status=dead}}</ref> This occurred only months after Levvit Robinson launched a new class action against 7-Eleven that included the [[ANZ Bank]]<ref>{{cite web |first=Sarah |last=Stowe |title=7-Eleven, ANZ to face class action from franchisees |website=franchisebusiness.com.au |date=February 15, 2018 |url=https://franchisebusiness.com.au/7-eleven-anz-to-face-class-action-from-franchisees/ |access-date=January 2, 2024}}</ref> despite banks having stopped loans to 7-Eleven franchisees in 2015.<ref>{{cite web |first=Sarah |last=Stowe |title=7-Eleven news wrap-up: recent revelations |website=franchisebusiness.com.au |date=October 28, 2015 |url=https://franchisebusiness.com.au/7-eleven-news-wrap-up-recent-revelations/ |access-date=January 2, 2024}}</ref> In a settlement approved by the Federal Court in 2022, 7-Eleven agreed to pay $98 million to franchisees alleging that they were misled regarding store profitability.<ref>{{cite news |first=Angus |last=Thompson |title= 7-Eleven to pay franchisees $98 million in class action settlement |work=[[Sydney Morning Herald]] |date=April 6, 2022|url=https://www.smh.com.au/politics/federal/7-eleven-to-pay-franchisees-98-million-in-class-action-settlement-20220406-p5abei.html |url-access=subscription |access-date=January 2, 2024 }}</ref> Though the settlement was reached without any admission of fault, the case included allegations that 7-Eleven had misrepresented employee-related costs as about seven percent of total costs, when a more accurate figure was around thirteen percent. This difference made many franchisees "unable to make a profit unless they underpaid staff," as was shown in the wage theft class action.<ref name = LW />
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