BIU injunction has ‘little practical effect’: KFC

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An injunction granted to the Bermuda Industrial Union will have “little practical effect” on KFC operations, according to company director Jason Benevides.

The injunction was granted by Chief Justice Ian Kawaley on Thursday.

According to the union, it prohibits the fast food eatery from offering new terms to employees of its parent company, KFC (Bermuda) Limited.

Mr Benevides said the company has arranged to keep workers who have not acceded to KFC’s restructuring employed where they are for the time being; BIU president Chris Furbert said he was unfazed by the company’s assertions.

The sides are wrangling over what the union has said is an attempt by KFC management to change the terms of the collective bargaining agreement for unionised employees.

KFC maintains that the agreement has expired.

The company split its operations between KFC (Bermuda) and KFC Operations Limited this month — restaurant staff were to be transferred to the new subsidiary, KFCO.

Mr Benevides insisted the division was merely a switch to the common practice of creating a holding parent company and operating subsidiary, and was unrelated to the dispute.

The argument over the existence of the collective bargaining agreement was referred to arbitration by Economy and Trade Minister Patrice Minors this was challenged by KFC, who appealed to the Supreme Court for a review of the decision.

The BIU argued successfully before the Chief Justice that the company cannot propose that employees shifted to the operations side could be switched over to new terms and conditions less favourable than those existing under KFCB.

Mr Benevides said that the ruling “has no impact on the continuation of KFCO’s operations in the same manner as they have been conducted since inception on June 1, 2012”.

The company had already elected to “temporarily continue the employment of those employees who had chosen not to accept employment with KFCO”, he said.

The offer was made to staff during a switch over to their new health insurance plan.

He also pointed out that the union’s court appearance to obtain the injunction had been ex parte, meaning the other side could not be present.

Mr Benevides said Mr Justice Kawaley has agreed that KFC may now make its own submissions before the court to have the injunction altered, or struck down.

He added: “KFC notes that at this stage of the legal process KFCB’s attorneys await response from the Minister’s and the BIU’s attorneys on when they will be in a position to respond to KFCB’s submissions in order that the judicial review may move forward.”

Said Mr Furbert: “This to me is no game. All I can say is we’ll deal with it through the courts.”

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