7Eleven staffs were being chronically underpaid? Billionaire-founder
Russ Withers has quit!
The chairman of the embattled retail chain 7Eleven has
resigned in the wake of the worker exploitation scandal. Billionaire-founder
Russ Withers has quit along with chief executive Warren Wilmot after it was
discovered that some staffs were being chronically underpaid. They faced a
senate hearing into the scandal which was exposed by several whistleblowers.
7Eleven has appointed a new chairman, Michael Smith,
following the resignation of the two executives. Mr. Smith is a member of
7Eleven’s board since 1999 and became a deputy chairman in August 2014. He
resigned from being a chairman of Australian Institute of Company directors,
and also from the board of Automotive Holdings Group to focus on fixing and
repairing 7Eleven’s damaged reputation.
He said the decision by Mr. Withers and Mr. Wilmot to step
down was “sad”.
The company will soon set in motion to find a new CEO and
appoint new members of the board.
Mr. Smith said the problem is getting worse but there will
be a lot of changes to be made in the company to stop it and to prevent it from
happening again.
“It came to a point I think we realized that there have been
some real failings in terms of our communications, reporting and knowing,” Mr.
Smith said.
He estimated that the changes would cost “many millions of
dollars”.
7Eleven would also review the back pay claims of its current
and former staff and the company would also announce the changes to the profit
share arrangement between head office and franchisees.
They are now moving to get this mess fixed as soon as it can
be done.
