7-Eleven Opting for Lower Interest Rate for Repayments to Some Workers
7-Eleven has been sprung short-changing workers potentially millions of dollars in back pay by changing the way compensation payouts are being calculated.
Fairfax Media can reveal that since 7-Eleven sacked a compensation panel headed by Allan Fels and replaced it with an internal system in collaboration with Deloitte, it has been using the ultra low cash rate to calculate interest on worker repayments.
One worker, Prakash Kumar, who was underpaid hundreds of thousands of dollars at a number of 7-Eleven stores has been offered a payout under the new scheme that is $100,000 less than the amount law firm Maurice Blackburn had calculated.
Documents obtained by Fairfax Media show that the discrepancies relate to a decision by the new panel to adopt a lower interest rate that is not in accordance with the standard practice of using the Federal Court Rate, which is the official cash rate plus 4 per cent. Sydney Morning Herald – Read more…
Fairfax Media can reveal that since 7-Eleven sacked a compensation panel headed by Allan Fels and replaced it with an internal system in collaboration with Deloitte, it has been using the ultra low cash rate to calculate interest on worker repayments.
One worker, Prakash Kumar, who was underpaid hundreds of thousands of dollars at a number of 7-Eleven stores has been offered a payout under the new scheme that is $100,000 less than the amount law firm Maurice Blackburn had calculated.
Documents obtained by Fairfax Media show that the discrepancies relate to a decision by the new panel to adopt a lower interest rate that is not in accordance with the standard practice of using the Federal Court Rate, which is the official cash rate plus 4 per cent. Sydney Morning Herald – Read more…
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