Union and KFC are ordered to go to arbitration
The Bermuda Industrial Union and KFC Bermuda have been ordered to go to arbitration in a bid to settle their ongoing dispute.Economy Minister Patrice Minors has sent an official notice compelling both sides to come together in the mediation process.The notice was due to be published in the Official Gazette today.Yesterday afternoon BIU President Chris Furbert said he was “happy the Government has abided by the law”.“We look forward to the publication of the notice, the BIU trusts that KFC will now abide by the law and resolve the dispute in arbitration,” said Mr Furbert. He spoke to reporters after hundreds of unionised workers attended a closed, BIU emergency meeting earlier in the day.“Some members of the public may wonder why a meeting of the general membership took place today,” he said. Mr Furbert cited a list of several reasons on the dispute that “concerns the terms and condition of employment” for KFC workers.The issues cited include the remittance of the Pension Fund to the Restaurant Pension Fund, employer pension contributions, the duration of the collective bargaining agreement and the “termination of Sister Valerie Adams”.Mr Furbert also stated that until the existing agreement is upheld, Ms Adams is reinstated and KFC agrees to participate in the arbitration in good faith the KFC boycott will continue . “KFC is in the process of preparing new terms and conditions of employment for the workers without negotiating with the BIU,” said Mr Furbert.“The BIU executive believe this behaviour has the potential to affect all workers because it demonstrates a willingness on the part of an employer to ignore its legal obligations for its own benefit even if this means the workers suffer a detriment as a result.“KFC is also refusing to negotiate with the BIU with respect to the pay of KFC workers for 2010-2011. KFC have not been willing to discuss an increase in the pay for its workers for that period despite previously agreeing to negotiate this matter in good faith.“They cite reasons of declining profitability. We have seen the audited financial statements of KFC for the year ended 31 January 2011 and note that despite this ‘declining profitability’ it appears to us that the directors have seen fit to pay KFC’s shareholders dividends for both 2010 and 2011,” he said.Meanwhile, KFC director Jason Benevides released a statement yesterday which can be read in full on The Royal Gazette website.It stated in part: “For most Bermudians the world is no different here than anywhere else and times have changed; the economy is poor; prices are increasing; people’s investments (if they even have any) and bank accounts are faring poorly; the future is uncertain; and now, like never before, everyone must pull together to protect what they have and work towards better times,” said Mr Benevides.“KFC has no choice but to operate in the Real World,” he added. “In the Real World a business exists to generate a fair profit for its investors. In the Real World, differences of opinion arise from time to time and it often takes much discussion and honest effort to work out those differences,” said Mr Benevides.“For some Bermudians, Bermuda is different than everywhere else — in their world business decisions shouldn’t be made based on economics; union presidents shouldn’t have to take wage cuts while demanding that other people do so; contracts one has negotiated need not be honoured if the provisions become inconvenient; it’s okay to say you want to protect jobs one moment and then ask everyone to stop buying the product that supports those jobs the next; it’s okay to break the law (illegal pickets come to mind) so long as you falsely accuse someone else of breaking the law first; and the whole truth is often less important than a headline. Let’s call this ‘Another World’.”The company also shot down the decision by Economy Minister Patrice Minors to send the dispute to arbitration.Mr Benevides said it had taken legal advice on the matter. “It is KFC’s view that the Minister does not have the authority to compel the parties to enter arbitration.“KFC has shared its legal advice with the Minister. In any event, the principal point of disagreement between KFC and the BIU appears to be related to be interpretation of a contractual termination clause rather than related to the terms and conditions of employment for KFC’s workers.”In conclusion Mr Benevides said: “Contrary to what the BIU would like the public to believe, disagreements between KFC and the BIU relate only to those parties and not to all workers in Bermuda.“Each business in Bermuda must operate according to its own unique requirements. Accordingly, KFC needs and can only accept a collective agreement with the BIU based on the specific needs of KFC’s business. This is a rational and realistic requirement in the Real World.”The emergency meeting disrupted public transportation disrupted but service resumed by midafternoon.A Government spokesman said: “With the cooperation of crews, we were able to maintain a reduced Dockyard to Hamilton service and a Dockyard to St George’s service, however the St George’s service was then impacted by a mechanical problem. We expected the cancellation of the 3.30pm Hamilton to Dockyard service because of this mechanical issue and the lack of repair staff earlier to attempt to effect timely engine repairs. “The Norwegian Gem sailed on time with a tug in attendance and the Celebrity Summit was running behind schedule and arrived at Dockyard approximately 30 minutes late.”Full bus service had resumed by 1.15pm, the spokesperson added.“A partial service was operated during the meeting with approximately 20 percent of scheduled runs operating.”Joe Semos of Meyer Shipping said: “There was minimal disruption for cruise ship passengers who opted to stay in Dockyard because the weather was bad anyway and they had the option of using the ferry service to Hamilton.”