7-Eleven owners are using surveillance cameras to prevent workers from stealing, months after some franchisees paid back $173 million over wage-theft accusations

The front doors to a closed 7-Eleven store are seen with a chain and padlock securing them shut.
7-Eleven and other convenience stores have deployed surveillance tech to prevent worker theft and shoplifting, but the companies’ theft of employee wages often goes unscrutinized.

Workers at some 7-Eleven stores, Shell gas stations, Dairy Queen restaurants, Holiday Inn hotels and other service businesses are being monitored 24/7 via security cameras by a “virtual supervisor,” Vice News reported Monday.

The Washington-based company Live Eye offers the surveillance technology for $399 per month. It is ostensibly meant to help business owners deter shoplifting, robberies, and employee theft.

In Live Eye’s promotional videos, according to Vice, remote supervisors question convenience store workers about whether they paid for drinks and why they’re talking to a person who’s out of view of the camera, and even attempt to scare off suspected robbers in what appears to be a 7-Eleven store.

Theft and fraud aren’t small problems – they cost retailers $62 billion in 2019, according to the National Retail Foundation.

But experts are increasingly raising concerns about whether such intrusive and persistent surveillance may impose even greater costs on workers. They’re also asking why problems like wage theft – with employers in 2019 stealing an estimated $12.6 billion from workers making less than $13 per hour, according to the National Employment Law Project – receive far less scrutiny.

7-Eleven and Live Eye did not respond to requests for comment on this story.

Part of the problem, some experts say, stems from the prejudices many people hold against low-wage workers and low-income individuals.

“When it comes to low-wage work and people who are on welfare, there’s just this general distrust,” Aiha Nguyen, a researcher at the think tank Data & Society who recently wrote a report on workplace surveillance called “The Constant Boss,” told Insider.

“It has nothing to do with technology,” she said, adding there’s a “dual standard” in how employers treat low-wage workers compared to corporate employees and executives.

The NRF’s survey found retail chains fired an average of 559 employees for stealing in 2019, and prosecuted an average of 156, while research by the Economic Policy Institute found employers are rarely prosecuted and underfunded labor regulators often lack the ability to enforce wage laws.

7-Eleven announced last year that some of its franchisees paid $173 million in back wages to more than 4,000 workers in Australia after media outlets including Four Corners and The Sydney Morning Herald reported the company stole as much as half of workers’ wages, doctored pay records to cover up the scheme, and threatened potential whistleblowers with deportation.

During an investigation by Australia’s labor regulator, 7-Eleven’s head office in the country faced accusations that it had bribed franchisees not to testify against its executives. (7-Eleven denied the accusations).

While the company’s chairman, Russell Withers, and CEO Warren Wilmot, eventually resigned, Withers went on to pocket $78 million from selling stakes in 7-Eleven stores. Wilmot faced no financial or criminal penalties as a result of the scandal.

In that context, Nguyen said, theft by 7-Eleven store employees “is a much smaller problem than that bigger issue of wage theft.”

But that’s not to say tools like Live Eye are inherently bad.

“In theory, this system could be helpful” for retail workers, Nguyen said, “but that’s not how it’s being deployed.”

Hiring a security guard would be far more effective at deterring theft, she said, “but what’s being presented is a video camera that may be turned on the workers themselves.” It is not immediately clear if, and how many, 7-Eleven stores employ a security guard in addition to other safety measures.

A former 7-Eleven consultant told Vice that Live Eye was “a solution in search of a problem,” because theft and shoplifting doesn’t cost stores much, and that startling armed robbers violated the company’s policy and could put workers in more danger.

“We provide every 7-Eleven store with a base security system that includes CCTV and alarms, however, independent franchise owners can install their own system on top of what is provided,” a 7-Eleven spokesperson told Vice.

“We’re using insecurity about the risk of robbery as an excuse to target workers,” Eva Blum-Dumontet, a senior researcher at Privacy International, told Vice, adding: “what’s happening with workplace surveillance is employers trying to keep track of their employees to make sure they match their idea of productivity. This is very toxic for the mental health of employees.”

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How wealthy Americans and corporations have used ‘negative freedom’ to strip rights away from workers

Fastfood workers
Overly promoting freedom of corporations can cause decreases to workers’ rights.

  • Paul Constant is a writer at Civic Ventures and cohost of the “Pitchfork Economics” podcast with Nick Hanauer and David Goldstein.
  • In the latest episode, they interviewed Mike Konczal, director of progressive thought at the Roosevelt Institute.
  • Konczal says allowing employers freedom to infringe on workers’ rights creates a dangerous economic imbalance.
  • See more stories on Insider’s business page.

The best brief definition of the limits of American freedom is a very old line that’s often misattributed to Abraham Lincoln: “My freedom to swing my fists ends where your nose begins.”

In other words, you can do what you want in America as long as you’re not hurting anyone. So far as rules of thumb go, it’s an elegant one.

And it also serves as a simple illustration of a difficult truth that isn’t often acknowledged in American politics: Freedom is never a zero-sum game.

Since Franklin Delano Roosevelt’s presidency, for example, we’ve established a minimum wage that (most) employers have had to pay. For workers, the minimum wage is an essential freedom to be protected, because it ensures that if they work a full week, they can afford the basic necessities. But for certain vulture capitalists, the minimum wage is a freedom-killing constraint to be derided and overturned. From their perspective, the minimum wage is impeding on their freedom to fatten profit margins by paying starvation wages.

Freedom in the workplace

Freedom isn’t handed down in pure form by some omniscient higher power. It’s determined by legislators, enforced by courts, and influenced by popular opinion. Like most human institutions, the decision of who enjoys more freedom is often rigged toward the most powerful. The last 40 years of outsized corporate influence has marched to the drumbeat of anti-worker laws that restrict the rights of workers to unionize and to keep their home life private. In general, the more freedoms your employers enjoy, the fewer freedoms you enjoy in your workplace.

This week’s episode of “Pitchfork Economics” features an interview with Mike Konczal, the director of progressive thought at the Roosevelt Institute. Konczal’s new book, “Freedom from the Market: America’s Fight to Liberate Itself from the Grip of the Invisible Hand,” is about the junction between economics and freedom, and how to reclaim some of the freedoms that American workers briefly captured in the middle of the 20th century.

Konczal says the concept of trickle-down economics that ruled over American politics since the 1980s has been informed by the concept of prioritizing negative freedoms over positive freedoms. “Negative freedom is the idea of freedom from the government, and the idea that the government can’t stop you from doing the things you want,” he explained, whereas “positive freedom is associated with a freedom to – a freedom to be able to get health care, or get a good education.”

‘Pro-freedom’ and anti-government

For too long, leaders on the left and right have bought into the libertarian concept that a government’s primary role in protecting freedoms should be to limit government’s power wherever possible. This anti-government stance is the reason why, for instance, the “pro-freedom” argument over the 2nd Amendment has long been to argue for the freedom of those who own the guns, when gun safety advocates could just as logically argue that the freedom of the individual to go to school or participate in public events without fear of being killed in a mass shooting should take precedence.

The popular discourse has for decades been so absorbed with negative freedoms that benefit corporations, Konczal says, that we’ve forgotten to prioritize our individual positive freedoms.

“Is the government making us more or less free with the way the economy is structured?” he said. “I think it’s increasingly less free in the past decades.”

Worker versus employer freedoms

Konczal says the recent debate over secure scheduling laws, which require employers to post employee schedules in advance and pay workers extra for shifts added or canceled at the last minute, are a good example of a positive freedom. Some workers, he said, “don’t start their weeks knowing the hours they’re going to work over the next week.”

If employers aren’t required to tell workers when they will and won’t be working, Konczal asked, “how do you build a robust social life with that kind of stress?” Without the freedom to plan even one day ahead, “it’s tough to start and maintain a family, or to volunteer, or join a bowling league – all the things that we think of as having a rich social life,” he explained.

Once you understand that worker freedoms have been trampled over the last 40 years, you start to see examples everywhere. Consider the Jimmy John workers who were forced to sign agreements that said they couldn’t go to work for another fast food restaurant if they quit, or the janitors who unwittingly signed noncompete clauses. Think of how many people feel trapped in their jobs because they can’t afford to give up the health insurance their employers provide. Can anyone really make the argument that these workers are anywhere near as free as their counterparts in nations with single-payer health care and stronger worker protections?

The economic power imbalance

In order to reestablish freedoms that benefit the individual, Konczal argued that “we need to decommodify spheres of our lives.” A public health care system and free public college would establish a baseline in which everyone has the freedom to pursue the life that they want, and worker protections would allow people to live balanced lives.

And lastly, “we need to do something about the real disparities of wealth and income in this country through very aggressive progressive taxation,” Konczal said.

Freedom can’t exist in a country with the kind of economic power imbalance that exists in America today. Your freedom to swing big bags of money around ends when your fortune risks crushing the livelihoods of millions of working Americans.

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Deliveroo shares jump as trading opens to retail investors, while hundreds of riders begin protests in the UK over low pay and working conditions

Deliveroo rider
Goldman Sachs bought $103 million in Deliveroo shares to boost its stock after a disappointing IPO.

  • Deliveroo shares rose Wednesday as the company opened trading to retail investors.
  • On the same day, about 400 riders are staging protests in the UK as they call for higher pay and benefits.
  • Goldman Sachs bought $103 million in Deliveroo shares to boost its stock after a disappointing IPO.
  • See more stories on Insider’s business page.

Deliveroo shares rose 4% on Wednesday as the company opened trading to retail investors, a week after going public on the London Stock Exchange to institutional participants only.

The food-delivery group’s shares opened at 288 pence ($3.96), giving it a market value of £5.2 billion ($7.2 billion). That is down from the £7.6 billion ($10.5 billion) valuation its IPO was priced.

Further turbulence is expected for Deliveroo’s shares as about 70,000 retail investors begin trading their stock.

Separately, some 400 Deliveroo riders are staging socially-distanced strikes on the same day that it opened up trading to amateur investors.

Protests over what they describe as poor working conditions and low pay will take place in London and four other cities in the UK, according to a statement by the trade union Independent Workers’ Union of Great Britain.

The riders are revolting less than two weeks after The Bureau of Investigative Journalism revealed that some riders earn as little as £2 ($2.76) per hour for delivering food to customers, far below the minimum wage.

“I’m going on strike for my basic rights and those of all the other riders struggling to get by and support families on Deliveroo poverty pay,” Greg Howard, a Deliveroo rider and chair of the union’s couriers and logistics branch, said in a statement.

Howard said he has seen work conditions at Deliveroo decline for years. After working through the lockdown, he said he became infected with the coronavirus and got “very little support” from the company. On its site, Deliveroo says it offers a relief fund for infected riders.

Another rider, Ethan Bradley, told the Big Issue: “I don’t know if I’m going to be able to make the rent next week, or pay the bills. Many riders have family, have dependents and have kids to feed,” adding that security of earnings “would mean so much to them.”

A Deliveroo spokesperson told Insider that the “small self-appointed” union does not represent a majority of riders who tell the company they value its flexibility and an ability to earn over £13 ($17.9) an hour.

“We are proud that rider satisfaction is at an all-time high and that thousands of people are applying to be Deliveroo riders each and every week. Riders are at the heart of our business and today we are beginning a new consultation with riders about how we should invest our new £50 million community fund,” the spokesperson said in a statement.

Shares in Deliveroo tumbled by more than 30% at its stock market debut on March 31, when only institutions were allowed to participate. The Financial Times said its IPO has been dubbed “the worst in the history of the London market.”

The food-delivery group may have waited too long to capitalize on the IPO frenzy for COVID-19 stock winners.

Goldman Sachs, one of Deliveroo’s underwriters, bought shares worth £75 million ($103 million) to boost its stock after its IPO dwindled, the FT reported on Tuesday.

The result of Deliveroo’s IPO was deflating for many investors in UK tech, according to Christian Nentwich, founder of financial tech firm Duco. He told Insider that although there are lots of good arguments about whether the IPO’s pricing was rightly set over workers’ rights and future business risk, “frankly, no one cares in other companies, outcomes matter.”

“Protests about dual-control structure, about the strategy of burning cash to fuel growth, and so on, are irrelevant – companies can simply list elsewhere,” he said.

But brands are as strong as their weakest link and for Deliveroo, problematic worker practices are its biggest challenge, said Sophie Lord, executive director of strategy at brand consultant firm Landor & Fitch.

“Major investment houses are looking at ESG seriously and have made it clear, they won’t tolerate a failure to engage. Whether the brand now has the lifeforce to overcome the scrutiny, time will tell – as will its share price,” she said.

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