The Tribune

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE MINISTER of labour yesterday 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. Hinting that he was siding with the union's position, Dion Foulkes said he was "inclined" to approve any Bahamas Hotel, Catering and Allied Workers Union (BHCAWU) move to apply to the Ministry for recognition, via certification, that it was the bargaining agent for KFC line workers. Mr Foulkes told Tribune Business: "In our law, there are two ways a union can get recognition. They can apply directly to the employer, and the employer can give recognition. If the employer does not do that it is deemed that the application has been rejected, and the union can then apply to the minister. The minister can do a poll and find out whether the employees wish to have the union represent them." He added: "There are no provisions that speak to a revocation if it is given voluntarily. The Industrial Relations Act only speaks to a revocation where the Minster certifies the recognition. This [the KFC situation], to my recognition, has never happened before. The union has indicated that they intend to apply to me to have the voluntary recognition confirmed by a certificate by me. I am inclined so to do." It was not clear whether this was done up to press time. KFC's decision to cancel its 'voluntary recognition' of the BHCAWU's role as the bargaining agent for its line employees came on a day when the chain was forced to temporarily close its nine Nassau stores, after workers staged a sit-down protest amid an escalating labour dispute. Both sides, employees and employers, appear to be engaged in an increasingly bitter, hard-line game of brinkmanship to see who will blink first in talks over a new industrial agreement, which have so far lasted five months with no resolution seemingly in sight. George Myers, head of the Myers Group, the ultimate parent of Restaurants (Bahamas), the KFC operator, declined to comment further beyond what was in the company's press statement. In that statement, 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. Union executives were said to be in meetings with Mr Foulkes late yesterday evening and were unavailable for comment. Two weeks ago, Restaurants (Bahamas), the operator of KFC's Nassau franchise, published an advertisement detailing its staff's wage and benefits package compared to its competitors. In its notice, Restaurants (Bahamas) said staff salaries were between 79-92.5 per cent higher than its fast 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 at rivals; 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. 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.