The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Kentucky Fried Chicken (KFC) franchise holder was yesterday blasted for “inhumane” treatment of the 35 employees made redundant yesterday with the closure of its Village Road store.

Darren Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) vice-president, told Tribune Business that many workers turned up as normal for their shift this morning, only to find out the outlet was closed and they were out of a job.

Some 32 line staff and three managers are understood to be impacted, and Mr Woods said the hotel union - which represents the former - was now awaiting a second meeting at the Department of Labour before determining how it would respond.

The union met yesterday with Robert Farquharson, the director of labour, who Mr Woods said had been “disappointed and shocked because something like this should not happen in the Bahamas”.

The union general secretary also accused the fast food franchise, operated by Restaurants (Bahamas), part of the George Myers-owned Myers Group, of failing to follow proper procedure by not informing the BHCAWU in advance of the proposed lay-offs.

Ash Henderson, Restaurants (Bahamas) marketing director, did not return Tribune Business’s phone message seeking comment, but in a public statement the company indicated the closure was driven by it having too many stores chasing too few customers.

Implying that its various outlets were ‘cannibalising’ each other’s sales, the KFC franchise holder said the Village Road move - effective immediately yesterday - was in response to “population shifts” in Nassau.

“We routinely assess all of our locations, both individually and as part of the entire store system, and conclude that closings are unfortunately necessary from time to time,” said Gabriel Sastre, Restaurants (Bahamas) vice-president and general manager.

“As a result of the company currently operating five KFC Nassau locations within less than two miles of each other, a position that is economically unsustainable, we made the strategic decision to close the Village Road store.

“This closing is consistent with our strategy to employ our resources in the most appropriate and beneficial locations, and we’re regularly assessing other potential sites to increase the availability and convenience of KFC in Nassau for our customers.”

KFC has come under increasing competitive pressures in recent years from the likes of Bamboo Shack, and it is unclear whether this may have contributed to the lay-offs, along with the fact that its rivals are not unionised.

The four KFC locations remaining open are Marathon Road, Prince Charles Drive, Mackey Street and Robinson Road. The 35 terminated employees will, the company said, receive the appropriate severance packages.

“Making the decision to close a store is never an easy one, and we’re extremely appreciative of the dedication and commitment that the Village Road team members have shown to the KFC brand. As we grow strategically across New Providence we would be delighted for them to apply for any positions that become available,” Mr Sastre said.

“KFC Nassau is always seeking strategic ways to grow the brand, both through innovative food offerings and new locations.”

Restaurants (Bahamas) added that it had invested $1.5 million last year on store renovations, and continues to employ 300 persons.

That will be of little comfort to those released, or the Government, which is desperate to reduce the unemployment figures.

Mr Woods, meanwhile, emphasised that the union was “very concerned” for the welfare of the redundant workers.

He added: “We’re concerned because we didn’t know anything about it. We got a letter first thing this morning, and they closed the store at the same time.”

Mr Woods questioned why no notice was given by Restaurants (Bahamas), this would have allowed the union to discuss the terminations with it and put in place measures to govern the process.

Suggesting that the company’s action was also not in accordance with the Industrial Relations Act’s Code of Practice, Mr Woods said: “That’s not the way it’s done. You show up to work to find you’re made redundant and the store is already closed.

“If they are able to do this in this fashion, not only with those let go but those remaining, there could be a state of pandemonium, because if they do it with this store they could turn around and do it with any store.

“There should be some dialogue or some discussion so we could soften the blow for these people. It’s really inhumane for those people to show up to work.”

Mr Woods said the contract for the Village Road store had expired at end-November 2013, and was extended for one month, presumably so KFC could maximise the Christmas traffic.