The fallout from the the joint Fairfax-Four Corners investigation into 7-Eleven’s labour hiring practices continues, with Fairfax today revealing that Two-thirds of all 7-Eleven stores in Australia appear to have been underpaying its workers, according to a Senate Inquiry investigating the matter:
The panel reviewing wage compensation claims for 7-Eleven workers has received 600 claims since September, panel member Dr David Cousins told a hearing in Melbourne on Friday.
He estimated that the claims had come from workers across 400 stores, suggesting more than two thirds of stores were underpaying workers.
“What we understand is that it’s [underpayment] widespread. We’ve had claims from every state. It is quite systemic,” Dr Cousins said.
He said an issue with workers coming forward was fear of deportation. “The visa issue is important”…
Meanwhile, a separate Fairfax report published today has revealed widespread wages fraud at Pizza Hut franchisees, which are using ‘sham’ contracts to underpay drivers:
A contract obtained by Fairfax Media shows a driver can earn $6 a delivery, with no more than two deliveries per round trip. Under the terms of the contract drivers provide the car, pay for fuel, vehicle maintenance and insurance.
A delivery driver, who asked to remain anonymous for fear of losing his job, said the franchisee had offered him an $8 an hour arrangement plus $4 per delivery as a compromise to the $6 per delivery contract, which includes the logo of Pizza Hut on the corner…
Driver sources suggested the model means drivers can only earn as little as $12 per hour…
Workers at a range of fast food chains, nail salons, restaurants and retail stores have also been caught out underpaying and mistreating workers, many of whom are international students.
We also shouldn’t forget the Senate’s interim report into Australia’s temporary work visa programs, released last month, which found that the Working Holiday Maker (WHM) visa system has also been subject to widespread rorting, with “stark” reports of “systemic abuse” , including the deliberate and systemic underpayment of wages, excessive work hours, and fraudulent record keeping:
The exploitation of vulnerable migrant workers on WHM visas and the role of labour hire contractors and sub-contractors in the systematic abuse of the WHM visa program were brought to life in stark terms during the committee’s inquiry.
The committee received evidence over several hearings about labour hire companies recruiting workers overseas…
The migrant workers detailed a series of breaches of Australia’s workplace laws…
The committee received evidence that certain sectors of the economy such as hospitality are notorious for non-compliance with workplace laws and are governed by precarious work norms…
In this regard, the committee notes that the extent of exploitation associated with the WHM and student visas in particular also raises questions about the degree to which the exploitation of temporary migrant workers is systemic rather than just an issue associated with a few rogue employers.
Then there’s Australia’s temporary “skilled” 457 visa system, which has seen foreign workers flood into the cities to work in professions that are either not particularly “skilled”, in short supply, or critical to the economy, such as cooks/chefs, cafe/restaurant staff, call centre/customer service, and accounting. 80% of these workers have also not undergone any kind of labour market testing to determine whether an Australian is available to do the job.
When viewing the above cases there is one word that springs to mind: “systemic”. The abuse and rorting of Australia’s foreign worker visa system are not isolated, but rather widespread, encompassing students and so-called “skilled” and unskilled workers alike.
They also come at a time when skills shortages across the economy have all but vanished. According to the Department of Employment’s latest skills shortages report, there are “more than enough applicants with relevant qualifications, or appropriate skills and experience, for vacancies in almost every occupation”. The report also noted that “in 2014-15, there was an average of 13.6 applicants for each skilled vacancy (15.8 for professions and 12.1 for technicians and trades), of whom an average of 2.2 were considered by employers to be suitable”.
With unemployment likely to rise significantly over 2016 and 2017 on the back of falling mining investment, falling dwelling construction, and the closure of the car assembly industry, the Government would do well to clean up the labour migration system before there is a backlash over foreigners “taking our jobs”.
