Part A – 7 Eleven Pay Issue.
Question 1:
7 Eleven is one of the Australia’s biggest convenience store chain owned by businessmen Russell Withers and his sister Beverley Barlow. It is claimed that the employees working over there are underpaid and made to work extra hours. (Abc.net.au, 2015)
A joint investigation was carried out by ABC’s Four Corners and Business Day and the investigation revealed that the employers were in fact underpaid. They were paid $10 per hour and made to work extra hours. The employees were also made to work extra-long hours and usually did the job for two people. They were not paid for the extra hours and working double. Moreover, they were also not paid penalty for working on Saturday, Sunday and public
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The company insiders said that the head office have been trying to hide the wage fraud by franchisees for years as 7 eleven’s profits would not be the same if this doesn’t happen. . (Smh.com.au, 2015)
They were 3 raids on 7 eleven in last 6 years and all the raids revealed the pay scam to be still present in 7 eleven. 225 stores were reviewed and found 69 stores to still have pay issues, this is equivalent to 1 store in every 4 stores to have pay issue. (Abc.net.au, 2015)
Question 2:
They are many ethical issues that can be raised in relation to 7 eleven. Kantianism theory: Kantianism theory of ethics says that acting rightly requires being motivated by proper principle that treats everyone with respect. Here, most of the employee’s working are overseas students who have much to worry about like college fee, rent, bills, expenses and without a job meeting every expenses is an impossible task, 7 eleven exploited the weakness of overseas students to their own advantage and so acted out of there character.
Working extra for no proper pay: The employees were made to work extra hours with no pay at all. The employees did the job for 2 people. They are national laws which states that no employee should be made to over work with a proper pay and breaks. But many of the franchise owners avoided the law. (Smh.com.au, 2015) Abuse of power: From the investigation it was revealed that not only the franchisee were
One of the several topics covered in Kant’s Groundwork for the Metaphysics of Morals is the issued of two shopkeepers. One shopkeeper is honest with his customers in order to maintain a positive reputation and improve profits. The second one is honest because he thinks it is right and exercises his respect for the moral law. The first shopkeeper is motivated to be honest by the rewards of a positive reputation and profit. The second is motivated by respect for morally right action. Taking these motivations into consideration from the standpoint of Kantian ethics, it is clear which shopkeeper is acting right.
First, the crew members have a common feeling that they were being “used” by management because they knew that many general office workers were earning more money and working shorter hours than them. Meanwhile, they felt that their jobs were more challenging and more valuable than those general office workers’. So they were supposed to earn more money than those people.
The low-wage workers are deprived of gratitude of their employer/manager, who treat them like animals and set these absurd hoops for their employees to jump through (drug tests:14&moralistic interviews)
So they will fired a percent of workers to make up for their lost. Also the author of document 3 states that joseph Sabia and Richard Burkhauser estimated in 2010. That over 1.3 million people would be lost if they raise the minimum to $9.45 per hour.
Unequal pay is something that has been an issue in America for a very long time. Gender has been one of the main culprits that played a factor in the wage gap between men and women, but race may have a role. The wage gap is expressed as a percentage (e.g., in 2013, women earned 78.3% as much as men aged 16 and over) and is calculated by dividing the median annual earnings for women by the median annual earnings for men. (“The Wage Gap”)
And franchisors, by design, exert indirect control over their franchisees and franchisee’s employees by way of licensing out the operation of their brand. In traditional franchise agreements, the franchisee is an independent business owner with a license to use the franchisor’s trademarks and other intellectual property as part of a royalty or fee arrangement. The ruling, which states that “setting productivity standards” is a form of indirect control, understandably has franchisors and franchise attorneys seeking shelter.
7-Eleven Inc. is one of the leading chains in the convenience/ retail industry. 7-Eleven was founded in 1927 in Dallas, Texas. It is the world’s largest mover and expanded faster then any of the convenience store. It also has many stores with gas stations that are cheaper price then the competitors. (http://mbacase.blogspot.com) The name 7-Eleven was originated in 1946 because the stores were open from 7am to 11pm. 7-Eleven has changed vastly after they started offering customers service 24 hours and seven days a week. It has now become the one stop shop, where customers can get their products quickly. (http://franchise.7-eleven.com)
Kant duty of ethics, Close the debate by Hector: 1 moral decision-making: he decides to avoid people because he is aware that he is a misanthrope. 2 Humanistic dimensions into business decisions: another person does not influence him no matter gender, race, age etc., he would hired the best qualified person for a job. 3 Importance of motivation: in business, threating everyone with equity will bring more motivation in the team people would know that any person could get to managerial position by hard work.
Dealing with low wage jobs is not easy. Some people really need their money so they become in fear of losing their jobs. They always have to be nice and respectful to customers if they are giving them a hard time. If a problem occurs they have to think quickly on how to fix it because those small things become enormous. For example if a worker shows up late to work then the manger will send them home ,so they came to work wasting their time and gas for nothing. Even if the person had a great excuse they will not have a care in the world. All of these problems is for minimum wage and it is not worth it.
Generally, statutes and case law governing franchising emphasize the importance of good faith and fair dealing in franchise relationships. If a franchisor exercises too much control over the operations of its franchisees, however, the franchisor risks potential liability. A franchisor may also occasionally be held liable—under the doctrine of respondeat superior—for the tortious acts of the franchisees’
When evaluating this case, we must first look at the relevant facts and issues involved. Ramada Inns, Inc. is the franchisor that allows Gadsden Motel company, the franchisee to use its trademarks and service marks. It is also important to note that Gadsden Motel company is a partnership. The case states that the motel owned by Gadsden Motel company started to receive “poor ratings from Ramada Inns inspectors”. They also failed to pay their monthly franchise fee. Even after they were repeatedly warned by Ramada Inns, Gadsden did not show any significant improvements. When Ramada Inns opted to terminate the franchise agreement, Gadsden failed to remove signage, trademarks, and service marks that represented Ramada. This occurred even
The first point I want to address is pay and overtime. $5.50 an hour seems like a lot to someone fresh out of school, like many of the employees. The foremen are paid a salary, whereas the line workers are paid by the hour. When it comes to over-time, the line workers were paid time & a half where the foremen were gratis (without charge; free). As the writer observed, the foreman on his shift often stepped in to lend a hand or would fill in when needed.
Philosopher Immanuel Kant considered moral rules categorical imperatives, meaning that they are absolute and unqualified commands for everyone, in every walk of life, without exception, not even for stressed professionals. Kant pursued moral principles that do not rest on likelihoods and that define actions as fundamentally right or wrong apart from any particular circumstances. A Kantian approach, which considers duty, fairness and rights, would force Barbara to terminate Wilson’s employment with NewComm, even though it would be unfair. It teaches a lesson to other employees to follow proper policies and procedures when it comes to contractual relationships with employers. Wilson did lie and defraud NewComm and for that Barbara can privately sit him down and explain all the reasons why he is being dismissed. For Kant the source of moral justification is the categorical imperative. In order for an act to be categorically imperative, it must be thought to be good in itself and in conformity to reason. Overall,
For perspective, as of January 2010, 7-Eleven, Inc. had earned the No. 3 spot on Entrepreneur magazine annual Franchise 500, which ranks top franchise opportunities in the U.S. An obviously healthy organization, this is 7-Eleven's 17th year to break into the top 10 (7-Eleven Inc, 2010).
3 Ans- 7 Eleven is the biggest convenience store in Australia. It has approximately 24,000 stores in worldwide and now is under fire for paying many of its staff as less as $10 without tax per hour. A joint investigation team ABC’s Four Comers and Business Day found a secret, illegal, cooperation and conspiracy between the Franchises that is known as’ Half-Pay ‘scam. There are many horrible stories of Sam Pen dam and many more people and student that caught in Scam. Terrible internal reports reveal that between July and August this year 7 eleven head office reviewed the payroll compliance at 225 stores and found that 69 stores had ongoing payroll issues. To deal with these