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Westside CEO Accused Of Underpayments (Read 350 times)
whiteknight
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Westside CEO Accused Of Underpayments
Mar 25th, 2019 at 2:38pm
 
Westside CEO accused of underpayments   Sad

Mar 25, 2019  Financial Review

The chief executive of major service station chain Westside Petroleum has been accused of involvement in underpayments across a dozen stores.

The Fair Work Ombudsman on Monday launched legal action against the chain for allegedly underpaying 22 employees a total $62,393 across company-operated stores in regional NSW.

The watchdog is taking CEO Patrick Riad to court over the underpayments as well as company accountant Francesco Ieraci and area manager Shahzaib Khawaja.



The allegations come just months after Viva Energy acquired a non-controlling 50 per cent stake in Westside Petroleum as part of its retail growth plans. Westside Petroleum has more than 50 service stations in NSW and Victoria in a mix of franchisee and company-operated models.

The FWO alleges that the company told employees they would be paid a net rate of $18 an hour, leading to underpayments of the employees' casual weekday, weekend, public holiday and overtime penalty rates.   Sad

The alleged payments, made from July 2015 to May 2016, were at least 25 per cent below the legal minimum, with workers entitled to award rates of $25.05 an hour on weekdays, $32.56 on weekends and an extra $14.21 for overtime hours.

According to the FWO's statement of claim, Mr Riad was "aware" the rates were lower than the award minimum, that the area manager was quoting a net rate of $18 per hour to workers and that no penalties or overtime were paid. 

As a result, the FWO alleges Mr Riad "aided, abetted, counselled or procured" the underpayments.

Workers were allegedly underpaid between $347 and $7,772 each, with four of the employees aged just 19 and two on visas including a 489 regional sponsored visa.

"It is unlawful for employers to pay their employees low, flat rates that undercut minimum Award wage rates, and those who rely on an unlawful 'going rate' can be left with a major back-payment bill and face significant penalties," FWO Sandra Parker said.

The company faces penalties of up to $54,000 per breach and Mr Riad, Mr Ieraci and Mr Khawaja face penalties of up to $10,800 per breach. Workers have been backpaid in full.

Although the FWO makes no allegations against franchisee operators of Westside Petroleum stations, it is seeking orders to require the company to inform its franchisees of the outcome of the legal action and the need to comply with workplace laws.

The case is set for mention in the Federal Circuit Court on April 12.
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greggerypeccary
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Re: Westside CEO Accused Of Underpayments
Reply #1 - Mar 25th, 2019 at 2:55pm
 

How long before aquascoot comes in to defend these three criminals?
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