Gasolene retailers call for Gov’t intervention in row with RUBiS
THE Jamaica Gasolene Retailers Association (JGRA) has called on the Government to intervene in a dispute between itself and French petroleum marketing company RUBiS Energy Jamaica, citing disregard for industry customs and practices as well as contempt for its members.
Yesterday, the JGRA said its membership is restive as a result of what it believes is the “unfair and callous treatment” of one of its members, Philip Chong, who is also the association’s immediate past president.
Current head of the JGRA, Gregory Chung, is claiming that Chong, who RUBiS issued with a letter of site termination for the Water Lane Service Station in downtown Kingston on October 31, is being victimised for not having supported RUBiS during the 2016 “bad gas” saga.
Chong demitted office as JGRA president at the end of September this year.
“They terminated his agreement and they have thrown him out, basically,” Chung told the Jamaica Observer yesterday.
The JGRA president alleges that utterances by RUBiS at a meeting with Chong on November 2, “leaves the dealer with a clear conclusion that he is being victimised. Also, he didn’t have any breaches, he didn’t have any problems or anything that was against the company policy”.
He pointed out that as head of the JGRA, the president must express the views and concerns of the members and not a marketer.
Chung said, too, that no reason was given for the termination of the site which Chong operates, except that RUBiS reserves the right to terminate.
“The problem is they give the dealers these contracts that have a one-sided clause and are totally unfair, and it goes beyond whatsoever is reasonable in normal conducting of business here in Jamaica,” he said, pointing to instances of little or no notice to give up a site. “It’s not like he was destroying the place or creating a situation where they needed him out immediately.”
Chung insisted yesterday that the JGRA welcomes international investors, but is adamant that it should not be at the expense of the dealers.
“Many dealers have lost their site, not just Mr Chong, in the same fashion through these unfair contracts,” he said.
The JGRA president stressed that the contracts continue to be a vexing issue for the dealers. “What the marketing company will say is that this is a private contract between [them] and whoever it is,” he said.
In the meantime, RUBiS Energy, though not directly responding to he claims made by the JGRA, said it’s moving to change the business model of the Water Lane Service Station in downtown, Kingston.
“This action will in no way disrupt services at the site or any other RUBiS location, contrary to the claims being made by the Jamaica Gasolene Retailers Association… the Water Lane Station Service is owned by RUBiS and the company’s move to place the service station under the direct management of RUBiS Energy Jamaica falls within RUBiS’ legal rights as owner of the service station,” the company said in statement.
RUBiS also said it wished to dispel rumours of a possible closure and potential loss of jobs at the service station, and confirmed that there will be no closure or loss of jobs.
The Petroleum Trade Reform Committee that was set up by former minister Phillip Paulwell in 2016 had among its terms of reference, the examination of the contract arrangements between marketing companies and dealers.