KFC dispute
The differences between KFC Bermuda Ltd and the Bermuda Industrial Union are clearly wide and deep, and it is equally clear that they are deadlocked, with little prospect of either side giving way.What is paramount now is that a dispute concerning a relatively small number of employees and business owners must not become a national crisis, endangering the livelihoods of a large number of Bermudians, regardless of how big the issue seems to be to those concerned.But that came a step closer to taking place on Friday when the Bermuda Industrial Union held a so-called meeting to discuss the issue and to march on KFC. As a result, thousands of commuters were inconvenienced, garbage collections were delayed, mail was not delivered and so on.The BIU is well aware that these kinds of actions are its greatest source of power, and Friday’s meeting was a demonstration of that muscle.But with rising unemployment and many businesses struggling to survive and save jobs, Bermuda cannot afford this kind of action now. There are few enough visitors on the Island for them to be prevented from getting where they need to go because of a dispute over working conditions at a fast food business.Like many businesses, KFC is no longer as successful as it was and if things continue as they have, it will, in common with many other businesses, be forced to reduce staff or close. The only alternative is to reduce its staffing costs so that it can maintain employment while reducing expenses. This is the same process that has happened, or is happening, in almost all other companies. Bermuda is not competitive and has to reduce expenses, and therefore its pricing, in order to attract business back and to get the economy growing again.It is difficult not to sympathise with the BIU and its members when they are confronted with rolling back gains and working conditions which have been gained over many years. And the reality that employees will see their standard of living decline as a result is a hard nut to swallow. But the truth is that having a job is better than being unemployed, and having some income is better than having none.KFC is not entirely blameless in this. While it continues to claim that it is willing to negotiate, it has been pretty hard-nosed in its approach. But it also seems to have operated within its rights and within the law, including its challenge of Government’s referral of the dispute to binding arbitration. It has a right to its day in court and this is an area of labour law that should be tested.The best course would be for both sides to undergo non-binding arbitration, where they can present their cases to a neutral panel which could then determine what seems to be the best way forward. While both sides would have the right to refuse the arbitrators’ decision, doing so would be risky, and a poor move from a public relations perspective.Nonetheless, it should be clear that the current dispute, while important, should not be allowed to damage the Island as a whole. Bermuda is in too precarious a state for a dispute of this kind to do any further damage to the economy and the livelihoods of many people who have no connection to it at all.