The managing director of fuel retailer
Caltex has publicly supported Government
and Opposition policies which propose
to hold franchisors accountable for wage
underpayments by franchisees to their
workers, and has promised to get tough on
franchisees who exploit their workers.
However the protestors claim that the audits
are costing them thousands of dollars and
do not show the lack of profitability in the
business model, according to franchisees.
Two separate legal actions are being prepared
against Caltex, according to the media report,
with one lawyer representing 40 franchisees
from across Australia.
Allphones collapses into
administration
Mobile phone and internet reseller Allphones
has collapsed into administration after its
shareholders withdrew funding support to
cover the group’s losses, according to a media
report.
Administrators PPB Advisory immediately
closed 18 stores and made 69 staff redundant
while it prepares the business and its
remaining 66 stores for sale.
At its peak, Allphones had 170 stores when
it was purchased by Canadian telco Glentel
for $70 million in 2012. A single Canadian
shareholder took over the company last year
with a view to turning around the shrinking
business, but could not continue to fund the
company’s losses.
Fast food chains to lose foreign
worker visas
The Fast Food Industry Labour Agreement
which allowed sponsorship of foreign workers
on temporary visas to work in fast food chains
for even unskilled jobs has been axed by the
Federal Government, claiming that Australian
workers must be given priority for these jobs.
Individual businesses will still be able to make
requests under existing labour arrangements
to fill roles where exceptional circumstances
can be considered. Existing foreign workers
on 457 fast food visas will be required to leave
Australia when their visas expire unless their
employers can present a case why they should
st ay.
The Fast Food Industry Labour Agreement
was introduced by the Gillard Labor
government in 2012. The axing of the
agreement was announced by Immigration
Minister Peter Dutton following the release
of proposed legislation to make franchisors
liable for franchisees’ wage underpayments
following mass media coverage of wage fraud
in 7-Eleven and other networks, however most
foreign workers affected by this wage fraud
were generally holders of student visas, not
457 visas.Penalty rates cut for many
franchise workers
Penalty rates for jobs in the heavily-franchised
retail, fast food, pharmacy and hospitality
industries have been slashed after the Fair
Work Commission handed down its findings
this week after a two-year inquiry.
Employers in these industries estimate labour
cost savings of between four to five percent,
with Sunday rates being reduced in most fast
food jobs from 150% to 125% for full and
part-time workers, and from 200% to 175%
for casual workers.
Penalty rate reductions of a similar size were
determined for the other industries, however
the restaurant and catering industry was not
approved for a penalty rate reduction but may
have another opportunity to seek change.
The reduction in penalty rates will be welcome
news for the franchise sector, where some
franchisees struggle to trade on Sundays,
or work the hours themselves, because of
prohibitive wage costs.
The Prime Minister has said the government
will accept the Commission’s ruling, with the
new penalty rate system to apply from July 1,
however it is expected that the Opposition will
not offer bipartisan support.New owner and franchisee ceo
to turn around howard’s storage
World
An experienced storage retailer from the
United Arab Emirates has emerged as the new
owner of Howard’s Storage World, which was
placed into administration last December
owning an undisclosed sum, according to a
media report.
The arrival of the new owner has saved 46 out
of the brand’s 58 stores, and resulted in the
appointment of a new CEO for the business,
an existing franchisee who has been part of
the group for the last seven years.
New owner Enayat Ghiasi of My Home
Storage and Store Trade has appointed
Ron Pugsley as CEO, and will refocus theJason gehrke | director
Franchise aDvisory centrebusiness using local suppliers to create greater
innovation in its supply chain, and a “back
to basics” retail formula. The company has
been able to renegotiate a number of leases to
ensure the continuity of retail stores, while
12 mostly company-owned stores were closed
during the administration.serial franchise conman Peter
Foster arrested again
Notorious fraudster Peter Foster has been
arrested again barely a year after being
released from jail for his role in the SensaSlim
franchise scam which stole $6 million from
110 franchisees, according to a media report.
Foster was arrested for his role in online
sports betting scam Sports Trading Club,
which defrauded a South African man living
in Western Australia of $1.5 million. At a
court hearing following his arrest, Foster’s
application for bail was rejected by the court
due to concerns Foster was planning to flee
the country and continue the scam abroad.Franchisees prefer closure to the
cost of refurbishment
Franchisees of food chain Nando’s are closing
their stores at the end of their franchise
agreements rather than pay refurbishment
costs of up to $1m for a renewed term out of
concerns that they will be unable to recoup
their investment, according to a media report.
Fairfax media reports that at least five Nando’s
stores have closed in Melbourne since 2014,
and that renovation costs make the businesses
unviable for franchisees to renew.
The company is currently involved in a
Supreme Court dispute with one of its largest
franchisees, whose three stores were seized by
Nandos after they refused to pay for expensive
upgrades.http://www.franchiseadvice.com.au