The Tribune

By CELESTE NIXON Tribune Staff Reporter cnixon@tribunemedia.net AS the KFC labour dispute continues to rage, Minister of Labour Dion Foulkes reaffirmed that the Bahamas Hotel Catering and Allied Workers Union is the official bargaining agent for fast-food chain's staff. On Monday, in a historic decision, KFC management withdrew its voluntary recognition of the BHCAWU as the bargaining agent for employees. Following the announcement, KFC staff staged a sit-down forcing the temporary closure of the company's nine New Providence locations. According to Mr Foulkes, late Monday evening the union applied to be certified as the bargaining agent for KFC staff, which the minister approved on the advice of the Attorney General's Office. He said: "I am hopeful that management will agree to meet with the union today and continue negotiations; from our point of view they are the recognised bargaining agents for the workers at KFC." While the Industrial Relations Act requires management to meet with staff, Mr Foulkes said there are no provisions that speak to the legality of KFC cancelling their voluntary union recognition. He said: "I want to make it clear. The law is silent on the point as to whether the action is legal or not." As a mediator, Mr Foulkes said he cannot take sides on the matter. He is responsible for facilitating negotiations and "cannot dictate on either side what to agree to". "I will continue to be engaged with both sides and I would like to encourage both management and the union to sit down and continue negotiations, to have the matter resolved quickly," he said. In a press statement issued earlier this week, KFC Nassau explained the decision to break union ties followed five months of stagnant negotiations over crucial "financial points of contention". The 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," the release said. "As a result of the cancellation, KFC Nassau will be dealing directly with its individual employees regarding their terms and conditions of employment." The labour agreement between the two parties expired on September 24, 2011, and negotiations on a new agreement began in December. The fast-food chain has argued that its current wage and benefits package is "two times higher than all other fast food brands". In an unusual move earlier this month, Restaurants (Bahamas) posted a newspaper advertisement detailing the staff's wage and benefits package compared to its competitors. Staff salaries were said to be between 79 to 92.5 per cent higher than its fast food industry 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. While admitting that the cancellation was "drastic", a KFC spokesman explained the decision was the only option to save the Nassau franchise and employee jobs. KFC Nassau said it is now "forced to unilaterally offer its employees an employment package that maintains their existing wages and a guaranteed 7.5 hour work day". It was also added that a voluntary severance package will be considered for staff that do not want to work under the new terms. Mr Foulkes said he hopes that labour negotiations do not reach the point where voluntary severance packages are necessary, however, if new terms can not be agreed upon, the government will ensure that all the employees "get what is due to them" according to their contracts and the laws of the Bahamas.