Log In

Reset Password
BERMUDA | RSS PODCAST

BIU criticises Govt in KFC dispute

Photo by Mark TatemKFC on Queen Street is involved in an ongoing dispute with the Bermuda Industrial Union

The Bermuda Industrial Union has criticised Government for not quickly intervening in its labour dispute with KFC.BIU president Chris Furbert said Bahamas’ labour government stepped in to negotiate following a clash between the franchise and unions on those islands earlier this year.He said he was surprised the Progressive Labour Party had not done the same.“I am totally angry right now that everybody seems to be just letting the wheels turn and nobody’s doing anything about this situation,” he told The Royal Gazette.“It seems like the only time something happens is when the BIU drops tools and acts another way that we get everybody’s attention and it shouldn’t take that.”BIU announced a boycott of the Queen Street store earlier this month, charging KFC had cancelled a collective bargaining agreement.Economy Minister Patrice Minors met with the union officials last week. She is set to meet with KFC representatives today.Said Mr Furbert: “I’m encouraged to hear that the Minister is going to meet with KFC. I’m hoping that she will convince them to put the current collective bargaining agreement back in place.”According to Mr Furbert, the ruling Free National Movement in the Bahamas intervened in a recent clash between the employees of Restaurants Bahamas Limited (KFC) and the Bahamas Hotel Catering and Allied Workers Union.According to the Nassau Guardian, the owners of the fast food franchise decided to withdraw the voluntary recognition granted by them to the BHCAWU 20 years ago.The owners decided that with immediate effect they would deal with non-managerial employees to establish new terms and conditions of employment.The Government stepped in on February 20. After a nine-day lockout, it ruled so the union was able to hold on to the wages, benefits and conditions of employment.Mr Furbert said: “Its almost like déjà vu, although this one is just a little different. The Government in Nassau however, stepped in fairly quickly to get the matter resolved.“I sent [Ms Minors] a copy of this recent ruling. I haven’t spoken to [Ms Minors] since last Monday. I will tell you this, and I don’t care who gets mad, but under a labour Government this should not have to be.”Contacted yesterday, a Ministry spokeswoman said: “Minister Minors advised that she is hopeful that an amicable solution can be reached with all sides concerned.”Mr Furbert remained adamant that the union would not back down.“We’re not coming back to the table to talk to KFC about a new agreement,” he said.“The letter that they sent to me, that I received on April 13, talks about sitting down to discuss a new agreement which is stated in the letter about five times. We’re not doing that because we want to discuss amending the current agreement; they want to discuss putting together a brand new agreement altogether.“The agreement was fairly negotiated between the two parties for over 40 years. Now, because they can’t have their way they are going to terminate the agreement.”Asked about the main stumbling block, Mr Furbert said: “This is a recession and they believe the BIU should do everything in its power to help them with the current recession. We believe that KFC is still a profitable company and one size does not fit all.“We’re not going to roll back the benefits just because of the recession. We have conveyed that to [Ms Minors] and we want to know what exactly the Government’s position is and the Ministry’s position on KFC terminating the agreement straight up.“They told us they were waiting for the legal opinion they had requested from the Attorney General’s chambers. I’m not sure if that opinion comes from the AG’s chambers or the Solicitor General, but somebody needs to make that decision.“All the Minister told us last Monday was that the AG [Kim Wilson] was out of the office and due back the next day and that she was going to have a conversation with the AG about whether or not legally the Government can move this process forward. We haven’t heard anything since.”Mr Benevides insisted there isn’t an existing agreement between KFC and the BIU.“There was a previous agreement which has now ended,” he said yesterday.“The previous agreement was freely negotiated and executed by both parties on the basis that it would stay in effect for a defined period of time and thereafter could be terminated. The agreed defined period expired more than one year ago and proper termination was effected more than five months ago.”He added: “The only possibility of the parties coming to agreement on labour terms is to participate in a dialogue with each other. KFC was and is prepared to participate in that dialogue.“If Mr Furbert refuses to participate in a dialogue, then he and he alone bears the responsibility for failing to resolve outstanding matters for the benefit of KFC’s staff members who he is supposed to serve.”Mr Benevides said of the KFC labour dispute in the Bahamas: “KFC Bahamas is not connected to KFC (Bermuda) Limited - that dispute has similarities but is not identical to the situation in Bermuda.“While some want to believe Bermuda is another world, an objective review of the similarities between the recent labour row in Bahamas and the current dispute in Bermuda clearly shows that when it comes to the realities of business and laws of economics Bermuda is no different than anywhere else.“KFC Bermuda continues to recognise the BIU as bargaining agent and will continue to do so for as long as our employees choose the BIU for that role.”The company has “not yet considered or taken any action to close its store or lay off staff as a result of the BIU’s call for a boycott and recent illegal pickets”, he said.“We have made every effort to remain open and to keep staff employed, and KFC is not proposing a reduction in wage rates, already-earned paid vacation allowance, or already-earned sick leave allowance for any existing employee.”Asked if the boycott has affected sales, he said: “I have been off Island for the last several days. I have not had an opportunity to analyse KFC’s most recent sales. However, should there be any evidence of a negative impact on sales and on the bottom line then the likely result will be a reduction in income for KFC employees as the company would have no alternative than to adjust its operations into line with customer demand.”