The Tribune

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net KENTUCKY Fried Chicken's (Nassau) nine stores remained closed yesterday, although union executives told Tribune Business they had informed the 300-plus line staff they represent to report to work. Darren Woods, vice-president of the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU), said that although Restaurants (Bahamas), owner of Nassau's Kentucky Fried Chicken (KFC) franchise, had cancelled its 'voluntary recognition' of the trade union as the bargaining agent, the union still commanded the support of KFC employees. Mr Woods said the union had been issued a certificate of recognition by labour minister Dion Foulkes, having applied for recognition by the minister after the move by KFC Nassau's owners. He warned that if KFC's management was allowed to get away with cancelling its voluntary recognition of the union, management at other businesses could follow suit. Mr Woods told Tribune Business: "Management, through their attorneys, sent us a letter saying that they no longer recognised the union as the bargaining agent for their employees. Subsequent to that, they issued the employees with new terms and conditions, and verbally said to them that if they wanted to work under those terms and conditions they could, and if not they would be terminated. They had until Thursday to sign those new terms and conditions. "The concerns the union had was that recognition, whether voluntary or by the signature of the minister, there is a procedure in terms of that recognition being revoked. The law does not speak to voluntary recognition. We have a difficulty with what they have done; we don't see anything in law to support what they've done." Mr Woods said the union has always been committed to negotiations. Although KFC outlets remained closed yesterday, he added that the union had instructed employees to return to work. "We told our members report to work as scheduled, but they posted a notice on the door to say that the stores are closed until further notice. If they continue to lock the people out then we will take steps to ensure that that doesn't continue," Mr Woods said, adding that the union was waiting to consult with its attorneys on the matter. In its statement onMonday, KFC said its decision to cancel its voluntary recognition of the BHCAWU came in the wake of five months of negotiations that followed the end of the last industrial agreement. "These negotiations have yielded no significant movement on the most important financial points of contention," the company said. "Today's decision means that KFC Nassau will no longer meet, consult or engage with the union on matters pertaining to the terms and conditions of the company's workers. As a result of the cancellation, KFC Nassau will be dealing directly with its individual employees regarding their terms and conditions of employment." KFC said it had tried every alternative before arriving at its current position. "The company made numerous efforts to get the union to appreciate its financial position and that, to remain viable, the company must adjust its employee benefits package to be in line with the norms of the sector in which it operates," it added. "The company long sought to renegotiate the wage and benefits package in a new labour agreement, but months of negotiation produced no meaningful movement on these points. "KFC Nassau made it clear that on 20 February, 2012, it would be forced to unilaterally offer its employees an employment package that maintains their existing wages and a guaranteed 7.5 hour work day. This is now in effect. "The company has also offered to consider a voluntary severance package for any employee who may not wish to work under the new terms and conditions." KFC said it would reopen its nine outlets as soon as possible. Mr Foulkes, in a recent interview with Tribune Business, said Kentucky Fried Chicken's (Nassau) move to cancel its 'voluntary recognition' of a trade union's 'bargaining agent' status marked the first time such a move has occurred, as the fast food franchise was forced to temporarily close its nine stores.