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KFC files writ to block dispute being sent to arbitration

KFC has filed a writ to try and stop a Government order to send a dispute with the BIU to arbitration.

KFC Bermuda Limited has filed a Supreme Court writ to block the Government order to send the ongoing dispute with the Bermuda Industrial Union to arbitration.The writ calling for a judicial review was filed on Wednesday “in the matter of a decision by the Minister of Economy, Trade and Industry made on or about May 3”.KFC Director Jason Benevides maintained the fast food company’s view that “involuntary binding arbitration is not the appropriate forum for matters of disagreement between KFC and the BIU to be settled”.In a statement released to The Royal Gazette he said: “Whilst KFC holds the utmost respect for Minister Minors and her responsibilities, we respectfully disagree with her interpretation of her authority to compel arbitration and the Ministry’s proposed course of action in this matter.“In a nation governed by rule of law, the appropriate place to seek clarification on an interpretation of law is the courts,” said Mr Benevides. “It is for that reason that KFC has submitted an application to the Bermuda courts seeking a judicial review in this matter,” he added.“KFC’s application to the courts should not be seen as an indication that KFC will fail to participate in any arbitration process that legally proceeds,” said Mr Benevides. But he said: “The company will act within the law and represent its business interests wherever necessary, be that in court or in an arbitration hearing, for the mutual benefit of its employees and shareholders.”The law firm of Wakefield Quinn is listed as attorneys for KFC.On Wednesday, BIU President Chris Furbert ended the KFC boycott after both sides submitted their terms of reference and nominees for the arbitration hearing to be held next month.Mr Furbert also produced the letter from Economy Minister Patrice Minors that laid out the terms for the arbitration process.In that letter the Minister called on both sides to “act in good faith and desist from taking any further action pending the decision of the arbitrator for the sake of good industrial relations and in accordance with the spirt of the legislation”.It was in that spirit Mr Furbert said “that the union decided to end the boycott”.When asked at the BIU press conference what’s next, Mr Furbert said: “I can’t tell you what this means for KFC but I can tell you that the BIU had a boycott against KFC that has been in place since April 13, and based on the request by the Minister the BIU is prepared to lift this boycott.”Meanwhile the next step for KFC at this stage looks set to end up in the Supreme Court.