After exposing the widespread wage fraud at 7-Eleven outlets across Australia, another wage scandal is under investigation.
This time, Fair Work Ombudsman (FWO) is investigating and will be conducting raids at outlets of oil giant Caltex’s service stations across the country.
A Fairfax Media investigation this week found that FWO gave advanced warning to the company about their impending raids at service stations across the country.
This warning prompted Caltex company to tip off its service station owners that they were about to be raided by the workplace regulator amid allegations of intimidation and systemic wage fraud.
Special focus on Rana family’s outlets
Oil giant Caltex has kicked off its own internal investigation with focus on one of its largest franchisee group owner, the Rana family which has stores in NSW and South Australia.
Caltex chief executive Julian Segal told the Fairfax that the company was inquiring into the franchise network of 650 sites to stamp out wage fraud.
"We are disgusted and we will act on any unlawful behaviour, including termination of franchise agreements," he said.
Caltex is investigating 27 service stations outlet connected to Rana family.
One former worker Syed Aqeel who worked for the Grange Caltex station operated by Aurangzieb Rana told Fairfax Media that he was paid a flat $12 an hour when he started.
An international student from Pakistan, Aqeel worked overnight at the service station and was made to pay when a customer drover away without paying for petrol.
Aqeel is not the only one. Fairfax has collected numerous timesheets and pay records that appear to show employees at Aurangzieb Rana's sites being paid as little as $13 dollars an hour, in cash.
Rana denies allegations
Aurangzieb Rana has denied allegations of wage fraud and said, "This is totally incorrect and wrong ... We comply with the law in regards to wages."
Caltex said it may terminate its franchise agreement with the Rana group if it finds "any breach of law or contract".
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