The Tribune

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

UNION executives yesterday accused management of Kentucky Fried Chicken (KFC) Nassau of "sinking to the gutter" over industrial agreement negotiations and "frustrating the process", after publishing another newspaper advertisment detailing the staff's wage wage and benefits package compared to its competitors.

In its notice, Restaurants (Bahamas), owner of Nassau's KFC franchise, said that staff salaries were between 79-92.5 per cent higher than its fats food industry competitors. It said KFC customer service workers were paid $360 per week, compared to $187 for its competitors; food service workers were paid $323 per week compared to $185; cooks were paid $358 compared to $200; and utility workers $323 compared to $150 at its competitors.

The notice also suggested that KFC employees enjoyed other benefits not provided by its competitors, including pension fund payments, health and welfare benefits, a Christmas bonus, paid birthday, long service payment and an employee aid fund.

The Bahamas Hotel, Catering and Allied Workers Union's (BHCAWU) vice-president, Darren Woods, told Tribune Business the latest notice was evidence that KFC's management and owners were not negotiating in good faith.

"If they want to negotiate in the newspapers then that's up to them, let them go ahead. Our position hasn't changed. We are prepared to give them whatever concessions we are able to give them. Outside of that we can only do what we can do. This only shows that they are not negotiating in good faith," Mr Woods told Tribune Business.

"The salaries that the people are making, they didn't go and get those salaries by themselves. KFC has been here a very long time. Those persons didn't start making those salaries, and the people who they are talking about as competition, they just came around."

Mr Woods said KFC (Nassau's) owner, George Myers' Myers Group, was frustrating the process of negotiations. The labour agreement between the two parties expired on September 24, 2011, and negotiations on a new agreement began in December.

Mr Woods said: "We have a meeting set for tomorrow. The only thing they are doing is frustrating the process. The employees are frustrated; the same people you expect to go to work and deliver good service.

"It says they have sunken to the gutter in negotiations. We have only gone through the first round of negotiations."

He added: "We can't be distracted by that. We are here to try and negotiate, and to ensure the company survives first and foremost, because if the company fails the employees suffer. It's no benefit to us to see the company fail, but they need to do something differently within the operation of that company. It seems as if they are looking for the employees to bail the company out when they are sitting down making some decisions."

KFC's decision to publish detailed information on its staff salaries and benefits is certainly an unsual step, and represents almost a role reversal. It is usually Bahamian trade unions that conduct negotiations over industrial agreements through the media, not the private sector employer, as appears to be the case here.

It seems likely that KFC, at least from its perspective, by going to the 'court of public opinion' is trying to sensitise Bahamians as to why it is pressing for cost cuts to maintain its competitiveness. It may also be trying to impress upon the union and staff the seriousness of the situation, and the need for it to be resolved quickly by them giving some ground, otherwise lay-offs may be inevitable.

Last week, Restaurants (Bahamas) posted an advertisement in the newspapers about the status of labour negotiations with the union. Union officials said the KFC (Nassau) owner was seeking to slash employee salaries by almost 15 per cent.

Restaurants (Bahamas) has argued that KFC's current wage and benefits package was "two times higher than all other fast food brands". It has proposed to the union that wages be held back to a level that is "more in line with its competitors", as well as a reduction in specific benefits.