There's more news of the outer workings of the Franchise Council of Australia and we suggest this is best enjoyed with some mysterious dark music playing in the background.
CBD has seen a letter sent by Franchise Council of Australia director Stephen Giles to some Turnbull government ministers in April urging changes to new legislation being introduced to hold franchisors liable for systemic and rampant underpayment of staff.
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Fels: '7-11 still don't get it'
Describing what he considers a "sacking," Prof Allen Fels told Leigh Sales he thinks 7-11 are trying to minimise their payout to underpaid workers, and that a culture of illegality could return to the troubled company. Vision courtesy the 7.30 Report, ABC.
In his letter, Giles expresses concern that Employer Minister Michaelia Cash is not passing on the FCA's concerns to other ministers.
Giles also describes the legislation as a knee-jerk response to media coverage of the 7-Eleven wages scandal and sticks the boot into former ACCC tsar Allan Fels, describing him as "aggrieved".
He also explains the policy is a "massive free kick" to the ALP and the Greens because, we kid you not, the legislation could "extend the influence of the union movement".
Giles' letter comes after revelations this week former Liberal small business minister Bruce Billson had been lobbying Joe Hockey and others hard on behalf of franchisors such as 7-Eleven and Caltex and making eyebrow-raising comments about migrant workers regarding their complicity in being underpaid.
CBD called Giles on Tuesday and had a chat, mainly about the virtues of the FCA's position. But he would not elaborate on why Professor Fels was "aggrieved".
(Professor Fels was sacked from the company's 'independent' wage repayment panel because he was too independent.)
What Giles would tell CBD is that the legislation will dramatically increase the cost of compliance for franchisors who are already so busy keeping up with their other obligations like branding, training, procurement and maintaining systems.
CBD presumes with that much on they have no time to for this proper payment of wages business!
No skaters in the Slaters deal
Tuesday marked the end of the parade of class actions against class action proponent Slater and Gordon after the settlement of all active proceedings against the company, most notably Maurice Blackburn's case.
The whole affair was put to bed for $36.5 million, a far cry from the $250 million Maurie Bs was initially claiming.
We presume all involved are tired (but not as tired Slater and Gordon's balance sheet) after a slew of conference calls wound up near midnight Monday, with all back on deck bright and early for an 8am start.
So here's a shout out to the workers on Slater and Gordon's side – which includes the firm itself, its debt holders and its many insurers. Leading this list is Leon 'Mr Fixit' Zwier and Theresa Ward from Arnold Bloch Leibler for Slater and Gordon and Gilbert + Tobin's gun restructuring partners Dom Emmett and Alex Whitby for the new owners of the business.
Also in the room was Wotton Kearney's Cain Jackson and Ed O'Brien for the group's London insurers. Also on for insurers were Jonathan Newby from Collins Biggers and Paisley and Andrew Miers from HWL Ebsworth.
Andrew Watson is among the most experienced class actions lawyers in Australia.
For Maurice Blackburn, there was national head of class actions Andrew Watson and special counsel Lee Taylor getting the deal done with assistance from barristers John Sheahan, William Edwards and Dion Fahey.
There's also a lot of chatter going around about the legal fees Maurice Blackburn received from the Slater and Gordon class action. CBD has it on good word that the fees are actually about 10 per cent of the settlement.
But those who are concerned can take comfort the fact the whole deal has to be signed off on by a judge.
Arnold Bloch Leibler's Leon Zwier. Photo: Josh Robenstone
CBD assumes Maurie Bs won't have made the mistake of settling for an amount just over its fee fall because that's ended very badly for other firms in the past with settlements getting thrown out. Remember Great Southern anyone?
Also, if legal fees have eaten nearly all of the $36 million settlement, it would put the legal fees of this case still at the preparation stage at more than half those expended in the Centro class action which ran from 2008 to 2012, included an 8½-week trial, eight bar tables and around 40 barristers.
It should all come out in a Federal Court hearing in the near future and we'll keep an eye on it.Â