New employment contracts accepted by staff at a fast-food restaurant are exactly the same as those they rejected on the advice of union bosses more than a year ago.And the Bermuda Industrial Union will now have to pay legal costs after it abandoned its fight to have the case heard before an independent tribunal and instead accepted terms that were first proposed by Kentucky Fried Chicken (Bermuda) bosses in May 2012.The dispute flared up in December 2011 after KFC’s three-year old collective bargaining agreement with staff had expired. Company bosses, who had seen profits slump in previous months, argued that a new agreement — with amended benefits for more than 30 unionised staff — needed to be written up.The BIU condemned that decision, arguing that the existing contract should remain in place until a new settlement was thrashed out. But talks in the increasingly ill-tempered dispute broke down in April 2012 when the BIU refused to take part in any further negotiations. Instead, members marched on the Queen Street premises and called for customers to boycott the business as a “last resort” to management’s “back door tactics”. The company had set up a subsidiary, KFC (Operations), through which it negotiated fresh contracts with its non-unionised staff. The Royal Gazette understands that some unionised workers also accepted the new terms at this point.A month later, with an offer that had already been accepted by non-union workers still on the table, then-Economy and Trade Minister Patrice Minors referred the matter to arbitration, and just weeks after that, the union won an injunction preventing unionised KFC (Bermuda) employees from being forced into accepting less favourable work terms.KFC attempted to block that tribunal from sitting, arguing that the three-man panel should not have the authority to make a binding judgement. But in March, Chief Justice Ian Kawaley ruled that arbitration was the most appropriate method of resolving the dispute, although he agreed with bosses that its judgments could not be binding. But the panel was never required to sit after a new contract with staff was agreed with the union last week.The Royal Gazette e-mailed BIU boss Chris Furbert last night asking why the union had now accepted terms that it had rejected on behalf of its members last year. No response was received by press time last night.But KFC director Jason Benevides did confirm that unionised staff’s terms were the same as those accepted by other workers last year. The Royal Gazette understands that all but one of the 36 unionised staff accepted the new deal.Saying he was delighted that the two-year-old dispute was finally over, Mr Benevides added: “It is certainly unfortunate that a stalemate in discussions with the BIU was reached nearly two years ago and that it took so long to get past that.“This protracted dispute had a very negative impact on KFCB and the business of its KFCO operating subsidiary. Accordingly, both KFCB and KFCO welcome the mutual agreement reached with the BIU to enable all parties to put the past two years of turmoil behind them so that KFCO can now focus on reinvigorating its restaurant operations to better serve its customers and continue employment for its highly valued workforce.“Under the terms of the agreement reached last Wednesday, the remaining employees of KFCB will today be given offers of employment with KFCO on the same terms as were offered them in May 2012 which were previously accepted by employees who earlier transferred to KFCO.“Although the past year has been particularly costly for KFCB and its shareholders, the events which unfolded during that time have validated KFCB and KFCO’s determination to run their businesses based on sound business practices and only on commercially sensible terms.“To the extent that the past two years’ events assist all parties in respecting each others’ rights and obligations in the future, and appreciating the interdependence of all parties for their own success as well as that of the Bermuda economy generally, then the outcome is productive and welcome.“KFCO welcomes the former KFCB staff into its integrated workforce and looks forward to welcoming and serving its valuable customers into the restaurant this summer and for many years to come.”