In the case of the emails and texts to Hockey, the reach of the FCA has scaled new heights. "Your Excellency Joe, as mentioned in my text message it is likely that the White House, and in particular Vice-President Pence, will express the concerns of the US franchise community about what the Turnbull Government is doing in the name of protecting so-called 'Vulnerable Workers' with a particular focus on the franchising sector," Billson says in an email sent on February 24.

He was referring to the Protecting Vulnerable Workers Bill, an election promise made by the Turnbull government before the 2016 election. It was aimed at beefing up penalties for wage fraud and make franchisors jointly responsible for workplace abuses if they have a "significant degree of influence or control" or influence over their franchisee's affairs.

It followed a joint Fairfax Media/Four Corners investigation that revealed franchise giant 7-Eleven was embroiled in a systemic wage fraud scandal across its franchise network.

'The last thing you want is surprises'

The 7-Eleven scandal put the spotlight on the $170 billion franchise industry and highlighted limitations in the law, which Minister for Employment Michaelia Cash sought to address in the new bill.

It sounded reasonable enough.

But some in the franchise sector baulked at the notion that franchisors could be jointly responsible for worker exploitation.

Enter Billson, who has been nothing short of Olympian in his efforts to try and derail the bill – or get some aspects of it diluted.


His February 24 email to Hockey, lists a series of US concerns likely to be raised with Hockey or Julie Bishop. He lists some suggested responses and makes the comment that the proposed legislative changes were little more than a reaction "to extensive media coverage of cases of underpayment by 7-Eleven franchisees of workers (many of whom were student visa holders with weekly caps on hours able to be work) and where irregular work arrangements, often that served the interests of both the visa holder and franchisee, were the focus of sustained media attention".

Billson tells Hockey: "[Not for sharing]: I have seen an early version of internal IFA [the International Franchise Association] guidance to its members suggesting to US systems contemplating major investments in Australia to 'suspend all new business starts and investment in Australia' until the impact of the planned 'joint employer 'laws can be fully assessed and for franchise system to consider Canada and New Zealand as attractive alternatives."

Billson told the Financial Review that his emails and texts to Hockey shouldn't be read as a warning of a potential diplomatic event. He says after speaking with the IFA and listening to their concerns he felt he should warn the ambassador that their issues might be raised during his visit to the White House. "The last thing you want is surprises," he said.

A government source said no representations were made to government members from Washington.

Fascinating insight

Other eyebrow-raising comments made to Hockey and backbenchers was that the responsible Minister (Michaelia Cash) has "assured the FCA that the Government is seeking to prepare legislation" that the FCA can "live with/begrudgingly endorse".

In an email to backbenchers on February 27, ahead of a crucial party room meeting to discuss the draft bill, he writes: "The Government is insistent on legislating but the Minister has said she we prefer an amendment that may earn the endorsement or begrudging acceptance by the FCA in light of what the Senate might do to the Bill if differing views continue."

In light of subsequent events, this was obviously not the case.


On March 1, the Bill was introduced into parliament in a form the FCA didn't support.

When asked why he had said the FCA had assurances from Minister Cash, Billson said they were based on "our feedback" at the time.

Whatever the case, Minister Cash has remained steadfast to honour an election promise and get the bill through the senate.

The leaked emails were composed at a critical time of policy formation. It is why they are worth studying. They give a fascinating insight into what goes on behind the scenes. They show the levers used, right up to the US, the politicians and former politicians contacted, relationships leveraged and the type of language and arguments employed to try and influence policy.

Sometimes it works, sometimes it doesn't. But it does show the playing field, the resources used and why there needs to be more transparency.

Bill struggles

In the email to backbenchers, Billson says: "The FCA has dedicated considerable resources to responding to this policy challenge." He says "this intense FCA dialogue with the Government has not been publicised, promoted in the media or disclosed widely to our membership due to confidentiality undertakings we were required to provide in order to have access to internal official Government documentation and processes".

A government source said no special access was granted.


The bill introduced into parliament wasn't to the FCA's liking, or that of some other groups such as the Australian Industry Group.

It was supposed to be debated in the senate in May, then June. A spokesman for Minister Cash's office says the bill is now "highly likely" to be debated when Parliament returns in August.

It is now getting to the pointy end. A recent Senate inquiry recommended the government consider amending the bill to clarify the term "affairs" be specifically associated with workplace relations matters.

The wording is currently "the person has a significant degree of influence or control over the franchisee entity's affairs". The FCA wants the wording to change to "the person has a substantial degree of control over the franchisee entity's workplace terms and conditions".

But Self Employed Australia (formerly known as Independent Contractors Australia) warns that if the Senate adopts the change, it would neuter the bill by allowing franchisors to go to court and argue they don't have substantial control over the franchisee and therefore shouldn't bear any liability for worker exploitation.

Allan Fels, the former chairman of the Australian Competition and Consumer Commission and is now chairing the Migrant Workers Taskforce, has heard all the arguments and believes the FCA and others would do well to spend their time and money making sure franchisees complied with the law. "This was all part of a very firm election commitment that has nearly universal support," he said." 7-Eleven, Caltex, Domino's and others cases demonstrate the need for this law".

Anything less would be a cop-out.