Fuel dump: RACT kicks United Petroleum to kerb for underpaying workers at Kingston, Sandy Bay

The RACT has dumped fuel partner United Petroleum over a worker underpayment scandal which cost the owners of the brand’s Sandy Bay and Kingston outlets $180,000 in penalties.

United Petroleum outlet in Sandy Bay. Picture: Supplied/Google

The RACT has affirmed its commitment to “ethical and responsible business practices”, after dumping long-time fuel partner United Petroleum over a recent migrant worker underpayment scandal which cost the owners of the brand’s Sandy Bay and Kingston outlets $180,000 in federal penalties.

In a statement published on its website, RACT said the decision not to renew its current agreement with United would have no effect on the motoring body’s remaining suite of member rewards.

This week the Fair Work Ombudsman secured penalties against both KLM Foods Pty Ltd, and Mr Loveleen Gupta, after four service station console operators were cheated of $20,000 pay in late 2021 and early 2022.

“Following a review of RACT’s member rewards partnership with United Petroleum, and in light of recent workplace breaches at United Petroleum franchisee operations, RACT has decided we will not be renewing our current agreement, which was due to expire later this year,” RACT said.

“Members will continue to be able to access the current fuel offer through the RACT Member Rewards Program for the time being. 

“We are working through our transition plan with United and will provide an update once this is finalised.  

“For now, members will continue to receive their 6c per litre discount.”

RACT CEO Mark Mugnaioni Picture: LUKE BOWDEN

The Fair Work Ombudsman found individual underpayments to the United Petroleum employees ranged from $2597 to $9574, with KLM Foods knowingly providing workers with false pay slips, and presenting fake time sheets to authorities.

Mr Gupta, who was personally hit with a $44,078 penalty, was found to have been involved in all the contraventions.

Judge Karl Blake found that KLM Foods and Mr Gupta had shown no remorse for underpaying the “vulnerable” workers, and said there was a need to deter them from future breaches. Judge Blake said the exploitation of migrant workers “remains a significant problem in the Australian community”.

The Fair Work Ombudsman investigated the Sandy Bay and Kingston outlets as part of a broader investigation into non-compliance across the United Petroleum network.

Originally published as Fuel dump: RACT kicks United Petroleum to kerb for underpaying workers at Kingston, Sandy Bay