United Petroleum has ended its partnership with a Hobart service station franchisee following a court ruling that found the operator guilty of underpaying migrant workers.
The Federal Circuit and Family Court ordered KLM Foods Pty Ltd, which operates the United Petroleum Sandy Bay and Kingston outlets, to pay almost $180,000 in penalties for underpaying four workers more than $20,000 between December 2020 and February 2021.
United Petroleum said today that neither the company nor its associated companies were involved in or aware of the unlawful conduct or KLM’s Fair Work breaches.
“Given the Court findings, United Petroleum decided to end its association with KLM Foods Pty Ltd,” United Petroleum CEO David Szymczak said.
“KLM Foods Pty Ltd will be terminated from its United Petroleum sites in Tasmania effective immediately.”
“The removal of KLM Foods from the United network will happen expeditiously.”
The Royal Automobile Club of Tasmania announced earlier this week that it would also be severing ties with United Petroleum due to the underpayment scandal.
RACT members will lose their 6-cent-per-litre fuel discount at United stations when the current agreement expires later this year.
“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.”
United Petroleum CEO David Szymczak has slammed RACT’s decision.
“These discounts have saved RACT members many millions of dollars since the agreement began.”
