All 7-Eleven franchisees and employees are tainted as a result of the actions of some in ripping off some who work and worked at 7-Eleven stores. 7-Eleven corporate is in damage control to preserve some value for the brand.
What has happened since the story first broke on the weekend in Fairfax media and gained momentum last night with the 4 Corners report on ABC TV, is a rising up of voices against the entire 7-Eleven network.
Personally, I am all for the rising up against 7-Eleven. They promote their businesses on price. Now we know plenty of their stores could afford the cheap prices for coffee, for example, because they were not paying award wages to their employees and they hired some such that others missed out on work. On a side note, I am also against 7-Eleven as it was this organisation that agitated for many years for the deregulation of the distribution of newspapers and magazines in Australia.
The scandal hitting the whole 7-Eleven network is what happens you are part of a branded network. Your ethics are only as strong as the ethics of the most unethical member of the network. The resolution of any scandal is only as strong and good as the leadership and capacity of the owner of your brand.
I think one reason not publicly discussed for declining foot traffic to newsagencies is the unprofessional standard of some businesses trading under the Newsagency shingle. Some poor operators are hurting others in the channel and we are doing nothing about it.
Newsagents trading under the N symbol are only as good as the worst store. Likewise newsagents trading under the generic Newsagency shingle and newsagents trading under each of the marketing group names.
The difference with some marketing groups is that they have mechanisms in their contracts for discipline of members – even to exit them from the group for damaging the brand. No such discipline exists for the N brand or the Newsagency shingle.
If you missed 4 Corners last night, catch it on iView.
You are spot on Mark. It isn’t spoken about but it is a big issue. There are lots of poor operators in newsagencies and this is effecting our industry’s reputation. We are our own biggest threat as bad practice is damaging our image.
I have been critical of 7-11 when talking to customers. They do not understand how much real wages cost a business like awards, penalty rates, super, workers compensation etc. They should be closed down with gaol terms for the heads of the business as this is disgraceful.
So as the head franchisor of Newsxpress, you could guarantee all franchisees are fully award and ATO compliant??
James – Don’t try and make an issue when there is not one there. I think the issue is that head office of 7-11 was aware for quite some time and it became part of the corporate culture of the business. The issue was that they knew about it and did nothing to fix it.
On a side note, all newsagents who join Newsxpress are independant retailers and their wage bills are paid by the individual newsagencies and not by the head office of Newsxpress.
For the record I am neither a Tower or Newsxpress member.
James as a director of newsXpress I can say that any time I am aware of actions by a member that could reflect on the whole group I act on it. Chris is right, newsXpress corporately does not manage payroll for franchisees.
A little too defensive, certain, and concerned for someone not professionally connected to Newsxpress – but Ill take your word for it – not relevant in any event.
My comment is simply that as in the Coles – trolley collectors case, and now the 7/11 situations, outsourcing responsibility for labour issues can be tricky when people are employed (directly or indirectly) for an identifiable branded entity (either corporate or franchised). Im not sure that being part of “some” marketing groups actually does reduce the risk of non-compliance.
Thats my point.
James that was not evident in your comment. I don’t think any response to you have been defensive.
Unless you are in a marketing group it is unlikely you will have seen or have knowledge of their approach to discipline or consistency on any matter.
James,
I am a Newspower Newsagent with a different POS system so no connection to Mark or his companies. The common interest is improving the brand value of our businesses.
As a business owner I am angry with 7-11 because they have used the exploitation of their employees to gain an advantage over their competitors (like me). I do not mind fighting for my business as long as it is a fair fight but underpaying employees is the lowest act around.