The Royal Automobile Club of Tasmania (RACT) will cut ties with United Petroleum after the fuel retailer’s Sandy Bay and Kingston franchisee was found guilty of illegally underpaying migrant workers.
As a result, RACT members will lose their 6-cent-per-litre fuel discount at United stations when the current agreement expires later this year.
In a statement to members, RACT said it is likely that a new fuel discount will be implemented in its place.
“Over the coming months, we will be introducing new reward opportunities that align with our commitment to ethical and responsible business practices,” RACT said.
“Members will continue to be able to access the current fuel offer through the RACT Member Rewards Program for the time being.”
The decision affects United Petroleum’s network of 51 branded outlets across Tasmania.
The company recently made headlines after the Federal Circuit and Family Court ordered franchisee KLM Foods Pty Ltd to pay almost $180,000 in penalties for underpaying four workers more than $20,000.
The court heard that the workers, from India and Bangladesh, were paid flat rates between $16 and $23 per hour, resulting in underpayments ranging from $2,597 to $9,574.
Judge Karl Blake said the company’s sole director, Loveleen Gupta, had shown no remorse and had not apologised to the underpaid employees.
