The former chair of the Australian Competition and Consumer Commission will lead a review of 7-Eleven’s business model in the wake of serious allegations of staff underpayments and a cover-up by head office.
Professor Allan Fels will head the two-person review, assisted by forensic accountants from Deloitte, and provide a report to 7-Eleven’s chief executive as soon as possible.
Business leaders such as Janine Allis, the founder of Boost Juice, have told SmartCompany the 7-Eleven franchising model is unusual in comparison to well-known brands such as Eagle Boys, Wendy’s and Cold Rock Ice Creamery.
7-Eleven chairman Russ Withers said in a statement the company has promised to “make good” any staff underpayments uncovered by the independent review.
“The bottom line is, what has happened with franchisees not meeting their employer obligations has happened on our watch, and we are going to make this right,” Withers said.
“There is no doubt that Allan Fels, whose position on this issue is well known, will fulfil this role without fear or favour. He is staunchly independent, and with the support of Deloitte’s forensic accountants, I am confident his involvement will help ensure 7-Eleven pays all approved claims promptly.”
Sydney baker in custody over alleged job ad assault
A Sydney baker has been remanded in custody after charges were upheld relating to the alleged sexual assault of two women who responded to a job advertisement at his bakery.
The ABC reports the man, who appeared in Burwood Local Court earlier today, was arrested last week and charged with two counts of indecent assault and one count of sexual assault.
The alleged attacks took place on two occasions in July and August when the women separately went into the bakery after answering an online job advertisement.
The court heard CCTV footage in the bakery allegedly shows one of the women being attacked over a period of 21 minutes.
The man was refused bail and is expected to reappear in court in October.
Shares up on open
Aussie shares have climbed higher this morning after initially falling on open.
Ric Spooner, chief market analyst for CMC Markets, said today’s ASX results will hinge on whether buyers step up their game.
“Bank sellers are back in action in early trade today offsetting buying in materials and energy stocks to push the ASX 200 index lower,” Spooner said.
“This follows on from yesterday’s market action, where despite a generally firm tone to international equity markets our market was sold off with major bank stocks finishing on their low as sellers took charge. Whether this selling in major bank stocks extends after this morning’s soft opening or whether buyers step in to take advantage of this counter trend move could be the key today’s overall market direction.”
The S&P/ASX200 benchmark was up 0.64%, rising 32.3 points to 5060.1 points at 11:42am AEST. On Thursday, the Dow Jones closed up 0.14%, rising 23.38 points to 16,374.76 points.
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