The collective bargaining agreement dispute between the Bermuda Industrial Union and KFC (Bermuda) Limited will be sent to arbitration.In a statement released to The Royal Gazette last night, Economy Minister Patrice Minors said after meeting with KFC representatives that she has “advised the parties that it is her intention to refer the matter to arbitration”.The move should essentially bring the union’s boycott launched on April 12 to an end, but reaction to the decision from both sides was not available at press time.Prior to the decision, earlier in the day, KFC Director/Controller Jason Benevides said: “I can confirm that representatives of KFC met with Minister Minors at 10.30am and shared with her the company’s perspective on the current dispute with the BIU.“We shared with the Minister our desire to see the BIU return to the negotiating table, and assured her that it is the desire of KFC’s Board to find practical solutions to ensure a sustainable cost structure for the company that will allow it to remain in operation for the foreseeable future, thus protecting the livelihood of our employees”, said Mr Benevides. He also thanked the Minister for “the courtesy of her invitation to meet”.But in a letter sent by KFC to Government’s Labour Relations Officer Glen Fubler, dated April 11 on the issue of arbitration, Mr Benevides said: “There is no legal basis for KFC to be compelled to participate in arbitration on the issue.”The letter also states: “KFC does not believe it is productive to expend resources in an arbitration proceeding on a moot point when resources would be better directed to discussing the terms of the last proposal put forward for a new collective agreement.”What the company’s next move will be now that Government has made the decision to send the dispute over the termination of the collective bargaining agreement to arbitration remains to be seen.Meanwhile the Bermuda Trade Union Congress (BTUC) spoke to the broader issue of cancelling collective bargaining agreements and whether in fact it is legal under Bermuda’s Trade Union and Employment Acts.BTUC President Wendell Hayward said: “Job benefits like sick leave, overtime and other benefits didn’t all just drop out of the sky. It came as a result of unions and employers getting around the table and bargaining with agreements between them.”And General Secretary Mike Charles warned that worldwide employers are using the recession as an excuse to roll back the rights of working class citizens.“Employers are using the economic situation to justify their actions, it’s a short-term fix because we’re not going to always be in this position economically,” said Mr Charles, who asked: “What happens when things get better?”The trade unionist also said: “Employers are now saying you should realise things are bad but in the good times there was no sharing of the good times.“Now that times are not so good they want the workers to share it, but when the times were good they didn’t say we made some extra money and you could have some.”Mr Charles also noted that most collective bargaining agreements carry a clause, even if the agreement has expired, that says the existing agreement continues until the two sides sign a new one.He also echoed concerns raised by BIU President Chris Furbert that the move by KFC, if allowed would set a dangerous precedent for labour relations in Bermuda.“We do not want to see employers just deciding willy nilly that they are not going to abide by the collective agreement. If this is allowed to happen then it sets a really dangerous precedent going forward for labour relations in this country.”Mr Hayward concurred and said: “This whole thing at KFC affects us all and if what has been proposed at KFC does in fact take place other employers will probably seek to do the same thing.“That means it will trickle down into other workplaces to the point where collective bargaining is not going to be seen in the light that its currently seen in now.“That is the unfortunate day that we see down the line as a result of this situation at KFC.”