KINGSTON, Jamaica — RUBiS Energy Jamaica Limited has sought to defend itself against claims by the Jamaica Gasoline Retailers Association (JGRA) of being “unfair and callous” in its handling of the termination of the dealership licence with  the association’s immediate past president Philip Chong.

JGRA in a release last Friday charged that RUBiS was terminating a long-standing retailer without adequate compensation and has shown contempt to Jamaican workers.

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However, RUBiS is adamant that due diligence and fairness was applied in the decision to change the business model for the Water Lane Service Station, for which Chong was the dealer.

The gasoline marketing company, in a statement today, insisted that at no point did the company breach its contractual agreement with Chong or violate his rights.

“RUBiS owns the Water Lane Service Station. The petroleum products sold at the site are supplied and sold under trade-marks owned by RUBiS and RUBiS pays the cost of all brand advertising, communications and marketing in Jamaica relating to RUBiS service stations and products,” the statement continued.

It further explained that the licence granted in January 2014 to Chong to operate the downtown Kingston site was for an initial period of one year, and included a provision for the licence to be terminable by RUBiS without cause by giving one month’s notice. The licence, inclusive of its terms and conditions, was signed willingly by the experienced businessman, RUBiS said.

See RUBiS statement in full below:

RUBiS Energy Jamaica Limited has sought to provide the facts pertaining to what the entity describes as a number of inaccurate and unsubstantiated claims and statements made by the Jamaica Gasoline Retailers Association (JGRA). The claims and statements in question surround the termination of a contract between RUBiS and the Dealer of the RUBiS Water Lane Service Station, Philip Chong.

In recent media reports, the JGRA claims that RUBiS has been “unfair and callous” in its handling of the termination of the dealership licence with Mr. Chong. However, RUBiS is adamant that due diligence and fairness was applied in the decision to change the business model for the Water Lane Service Station, and at no point did the company breach its contractual agreement with Mr. Chong or violate his rights.

RUBiS owns the Water Lane Service Station. The petroleum products sold at the site are supplied and sold under trade-marks owned by RUBiS and RUBiS pays the cost of all brand advertising, communications and marketing in Jamaica relating to RUBiS service stations and products.

The licence granted in January 2014 to Mr. Chong to operate the Downtown, Kingston site was for an initial period of one year, and included a provision for the licence to be terminable by RUBiS without cause by giving one month’s notice. The licence, inclusive of its terms and conditions, was signed willingly by the experienced businessman.

Consistent with the provisions of the licence, on October 31, 2018, RUBiS gave notice to Mr. Chong of its intention to terminate the contract effective January 5, 2019; 60 days’ notice instead of the 30 days stipulated in the licence agreement.  Therefore, the JGRA’s accusation of short notice is simply not true.

In its utterances, the JGRA further communicated that the termination does not take into account ‘exit compensation’. However, RUBiS has confirmed that the agreement signed with Mr. Chong makes no provision for “exit compensation” or any other payment to be made to the dealer on termination of the contract; and that the company’s policies preclude any such payment. Accordingly, RUBiS sees no basis for making of any such payment or for giving consideration to the establishment of any such precedent.

RUBiS further refutes the claims made by the JGRA suggesting that the company has been exploitative of Jamaicans and that its move to change the business model would cause displacements and disruption in the local fuel trade.  In fact, the Water Lane Service station will continue to operate and will boast a full complement of staff. RUBiS also asserts that its operations facilitate directly and indirectly the employment of over 1,000 Jamaicans.

The entity also says it is not aware of any breaches or cases of contempt referenced by JGRA. RUBiS says it remains open to receiving written evidence from the JGRA to support such claims.

It is not uncommon for RUBiS, or any other marketing company that owns a service station, to change the business model for the operation of a service station based on customer needs, market conditions, and established best practices. 

RUBiS wishes to make clear that its operations in Jamaica are governed by the laws of Jamaica, the provisions of its contracts with its various partners including its dealers, as well as RUBiS’ global policies.

Since entering the local petroleum market, RUBiS has invested billions of dollars in upgrading its import terminal and islandwide network of service stations. These investments have positively impacted its customers, dealers and staff, and the wider economy.