AUSTRALIA

New deal helps to heal Caltex wounds

As Caltex and Woolworths finalise their alliance agreement the petrol retailer and refiner continues to face the music following the release of an internal report into the humiliating ‘fear, uncertainty and doubt’ (FUD) memo saga which encouraged intimidating tactics when dealing with franchisee partners in order to secure the best possible deal in its discount petrol alliance with retail giant Woolworths.

The petroleum refiner has already sacked some staff and disciplined others in an attempt to rebuild its damaged reputation.

Additionally Caltex said it is committed to ‘reviewing and amending corporate negotiation and procurement documentation’. Interestingly it said it was unable to determine the source of the leaked memo.

A summary of the report into the incident from Andrew Rogers QC has been posted on the company’s website which Caltex managing director Dave Reeves said revealed failures by individual employees, including managers.

The company is already embroiled in legal action with a number of franchisees who claim they have been unfairly treated in the Woolworths deal. In January the groups barrister James Kewley told the court that: "The inevitable consequence . . . (of the Caltex-Woolworths discount petrol plan) undermines the viability - not just the profitability but the viability - of the entire franchise network.”

"The fundamental complaint of the franchisees is that they are being discriminated by their own franchisor."

However the companies finalised arrangements for the national expansion of the Woolworths’ fuel discount redemption offer to around 450 sites today.

“Today, with Caltex, we are taking a very significant step by extending our petrol offer to our customers nationwide resulting in quality discounted fuel near where they shop at around 450 Caltex Woolworths service stations. Our offer to customers of spending $30 or more in Woolworths/BIG W stores to receive 4 cents off per litre of petrol will now be extended across the nation,” Corbett said.

The new arrangements replace interim start-up arrangements that commenced on 21 November 2003 and resulted in 41 Caltex sites co-branded Caltex Woolworths accepting Woolworths fuel redemption vouchers.

The final arrangements will see the 305 Woolworths sites become jointly branded while Caltex expects that it will co-brand more than 130 of its sites near Woolworths’ stores.

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