The Bermuda Industrial Union is calling on the Island to boycott KFC.KFC management is insisting that a collective bargaining agreement with the union has been terminated, according to union president Chris Furbert and it has refused the union's request to subject their dispute to arbitration."Today is a sad day for industrial relations," said Mr Furbert.KFC had given notice in February 2011 to modify the collective bargaining agreement but then seven months later said they were terminating the agreement, Mr Furbert said.KFC has retained law firm Wakefield and Quin which has advised the company that the differences between the parties does not qualify as a labour dispute as defined by the law, and cannot be sent to arbitration.The company's position is that there is no collective bargaining agreement, while the union says that KFC's termination of the agreement was invalid. Both the BIU and the Department of Labour have suggested arbitration as a way to resolve the dispute.But KFC's lawyers have indicated, in a letter provided to the media by Mr Furbert, that should the Economy Minister refer the matter to arbitration, the decision could be challenged in Supreme Court.The BIU warned KFC to reinstate the Agreement by 3 pm today or face a boycott. But the deadline passed without response from the company."It is a sad day in the history of this Country when an employer can unilaterally cancel an agreement after giving notice to modify the agreement," said Mr Furbert."If this employer is allowed to get away with it, I believe other employers will try to do the same sort of thing and it makes a complete mockery of the industrial relations system in this country."About 30 employees, full and part-time, are involved."The intention here is not to close down KFC, it is to get KFC management and the Board and Wakefield and Quin to understand what labour relations means in this Country," Mr Furbert said."If the workers decide they want to decertify the BIU, then you can go ahead and cancel that agreement. But the workers have not made that decision."