The Tribune

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net EXECUTIVES of the Bahamas Hotel Catering and Allied Workers Union (BHCAWU) and KFC (Nassau) are set to begin negotiations on a new industrial agreement on December 9, the union's president said yesterday, telling Tribune Business that talks over the payment of Christmas bonuses were moving slowly. Nicole Martin told Tribune Business: "We met with the Minister. We had two meetings with the minister, and the owners and operators of KFC. We are still talking. The negotiations for the contract are scheduled for December 9. "As it relates to the most outstanding issue, which is the payment of the Christmas bonuses, we are talking through that. So far it is moving quite slowly, and not in the direction we like. I think the two parties have a desire to resolve it; it's just a matter of striking the balance." Last week, KFC warned that its survival hinged on negotiating a reduced wages and benefits package for its line staff, saying it was currently "more than double" the industry average and making the company uncompetitive against ever-increasing competition. KFC said it was subject to the same operating costs as its competitors, but its wage and benefits package was more than two times' higher, describing this as "unsustainable" and needing to be reduced in a new industrial agreement. It said it was "operating at a disadvantage" as a result. KFC also disclosed it had to secure additional financing to maintain its operations, although it was not clear whether this was equity or debt. "We have been facing some tough times. With the downturn brought by the global recession, the Bahamian economy has been hard hit," its general manager, Gabriel Sastre, said. "We have all had to face increases in costs, which is a challenge for us all, including KFC. "Our customers are also finding it difficult and have let us know that our prices are too high by not only complaining to us directly on Facebook and via customer focus group feedback, but also by their decision to start shopping elsewhere."