The ongoing dispute over a new collective bargaining agreement between KFC and the Bermuda Industrial Union looks set to go arbitration in the New Year, with binding results.That's the latest in the ongoing saga that unfolded this week when BIU President Chris Furbert announced the fast food eatery opted to cancel the agreement that covers some 36 employees.At a news conference held late yesterday, Mr. Furbert stated outright that he doesn't know which law firm advised KFC that they had the right to strip workers of rights, but the only ones who can do that is the workers themselves by way of the decertification process.“I don't know which law firm advised them that they could cancel the agreement,” he said. “The agreement is clear that you either terminate or modify it, which KFC indicated they would do in writing in a letter dated February 1st of this year.”On that note he said Bermuda's Constitution is clear.Although he admitted when asked by The Royal Gazette whether the KFC representatives were told outright by Government Labour Relations Officer Glen Fubler in the meeting held yesterday that KFC had broken the law, Mr. Furbert said no.What he did say was that KFC will have to go back to the company's board to recommend that the agreement be reinstated forthwith, and that the next step will be arbitration.On the issue of union busting, Mr. Furbert said: “It would be very unfortunate if other employers decide to follow suit, this situation is a classic example of that which is a recipe for disaster.”When asked by The Royal Gazette how he viewed the fact that to date there has been no official comment by a Labour Government, Mr. Furbert replied: “What's disturbing is Governments like Ministers come and go, as long as we have the Westminster system you rely on civil servants to maintain the standards that have been set.”“The laws of the land are supposed to be enforced by the powers that be, and the powers that be have said they took legal advice from the Attorney General's Chambers but that opinion,” he said was on the issue of agency shop which has nothing to do with the issue at hand, “something that representative should have known, you simply can't have your cake and eat it too.”KFC issued a statement of their own, taking issue with a number of statements made by the union leader.That statement released at 3.24pm on Wednesday by KFC's lead negotiator Graham Redford stated that KFC notified the BIU, as the representatives of its unionised employees, in writing on February 1st, this year, of its intention to “modify” the existing terms of the existing collective bargaining agreement which was due to expire on April 15th.According to Mr Redford, negotiations began that same month “in good faith, but unfortunately KFC was not able to reach and agreement on the requested changes”.The statement goes on to say that on September 9th, KFC issued the BIU with written notice of its intention to “terminate the collective agreement pursuant to Article 38.That section of the agreement states: “This agreement shall come into effect on April 15th, 2008 and shall remain in effect for a period of not less than three years and thereafter shall continue in effect provided that anytime after January 14th, 2011, three months notice of termination or modification may be given by either party hereto.”Mr Redford noted at this point that “the effective date of termination, being December 9th was confirmed in the same notice”.According to KFC the two sides failed to agree on a number of key points which KFC's Board of Directors deemed “essential for KFC to be economically sustainable” as the company moves to “reform its cost structure over the long term and remain a viable enterprise”.Like many other businesses in Bermuda Mr Redford stated, “KFC has experienced a trend of declining sales and increased operating costs leading to net losses”.Basically he said KFC did not anticipate “the economic realities that all business in Bermuda, especially those in the hospitality industry are facing today.”The statement goes on to say that while the company remains committed to its staff, a recent review of details of the Restaurant Pension Fund “prompted KFC Management to make an application to the Pension Commission to transfer employees' pension participation from the Restaurant Pension Fund to an existing registered pension scheme.“KFC believes this is the appropriate and prudent course of action to protect the interest of its employees.”The company will continue to collect employee pension contributions, and “set aside employer contributions” in accordance with the law.And pending approval from the Pensions Commission, “funds so collected will be held in escrow for ultimate deposit to employee pension accounts.”“Now is not the time for emotions to rule,” Mr Redford said, “Bermudian staff, Bermudian owned companies and Bermuda itself are suffering, and we must all work together to find solutions to our shared challenges.”When asked to respond Mr. Furbert said there is no employer out there aside from KFC who can say the BIU hasn't done their part.“Look at what the union has done for the hotels,” he said, “we've had a wage freeze for three years now.”“What did we do for HWP, we're had a wage freeze for two and a half years and reduced hours.“Just about everywhere where we've been asked by the employers to work with them that is exactly what the union has done exactly that, so I take great exception where people are thinking that over the past two years during this recession that the BIU hasn't played its part.”More importantly Mr. Furbert went on to say that just this year in July, the BIU agreed with the Government of the day that blue collar workers would work overtime for straight pay.“Don't tell me we haven't done our part,” he said, “We have done our part.”