BIU upset at KFC’s ‘back door tactics’
KFC was accused of “back door tactics” by the Bermuda Industrial Union, after a change in health insurers set off a new round of accusations in the ongoing labour dispute.The company is changing worker insurance policies on June 1 — and splitting the company in the process, with workers to be employed by a subsidiary.BIU President Chris Furbert said he was pleased that both sides had submitted their terms of reference to Government, so that arbitration between the two sides could go ahead.His issue yesterday lay with a memo accompanying the insurance documents, which informed franchise employees that they would have to sign on with the KFC subsidiary in order to qualify for their new Colonial Insurance plan.“Management are tying this insurance policy to the new company,” Mr Furbert charged, of the switch from KFC (Bermuda) Limited to KFC Operations Ltd.The Queen Street eatery was the scene of heated words yesterday morning, as KFC employees sat inside with their documents, and Mr Furbert, flanked by union officials, decried the decision by employers to move workers to “KFCO” while their dispute faces arbitration.The new insurance policy will not go into effect until June 1, but Mr Furbert insisted his understanding of the matter from KFC employees was that they were told they had to sign the policies today.When contacted, KFC director Jason Benevides told The Royal Gazette: “Staff were encouraged to complete the health insurance enrolment documents today while a representative of the insurer was on hand to answer questions and assist them. It is not correct to say that staff were required to sign today.“However, as the new insurer needs time to review and process documents before the new health plan can be activated, all participating staff are encouraged to return completed enrolment documents as quickly as possible.”The BIU, which has accused KFC of altering the terms and conditions for its workers without consulting the union, has boycotted the restaurant since last month.Mr Furbert stressed that the BIU had no wish to “go down the road fighting with them”.“It was never the BIU’s intention to put any employer out of business,” he said. “But we can’t sit and allow an employer to say they want to roll back gains.”He added: “KFC is trying to take advantage of the current economic climate. They’ve still got profits. It’s not like they’re in the red.”Mr Furbert said the BIU was prepared to drop its boycott if KFC would state publicly they were reinstating the collective bargaining agreement with the union.Asked if the Bermuda Trade Union Congress would join the boycott of KFC now that the two are joined, Mr Furbert said: “It’s up to TUC members to decide.”The two will discuss the issue at a meeting on Tuesday, he said.
KFC’s name-change has raised union hackles, but the company insists the move is an effort to streamline its operations.
As of next month, Kentucky Fried Chicken (Bermuda) Limited will still exist — but the workers behind the counter will be employed by KFC Operations Limited.
Asked for clarification, KFC director Jason Benevides told
The Royal Gazette: “Kentucky Fried Chicken (Bermuda) Limited (‘KFCB’) has for some time been planning a corporate restructuring to ensure more efficient allocation of the company’s capital and also improve financial reporting of operating results.“As a result of this restructuring, the company is moving its restaurant operations to its wholly owned subsidiary, KFC Operations Ltd. (‘KFCO’). Non-operating assets will remain at the KFCB holding company level.“As restaurant staff are employed in the operating side of the business, they will be employed by KFCO from June 1, 2012. KFCO has arranged for offers of employment to be made to all existing employees of KFCB on substantially the same terms presently provided by KFCB.“The company’s restructuring was determined necessary for the efficient operation of its business and is in no way related to whether or not a collective agreement is in place for the company’s staff.“KFCB advised the BIU in the course of a mediation meeting months ago that the company had formed a new subsidiary and that the employer name on any new collective agreement would have to be amended to reflect the name of the legal entity which would be employing staff.”Switching to new health insurance policies means the restaurant’s employees will have to sign statements of employment through the new entity, KFCO.However, the union has asked its members not to sign such statements.“If you have a statement of employment and a Collective Bargaining Agreement, which supersedes which?” BIU President Chris Furbert asked.While he acknowledged that employees have to be insured, Mr Furbert called it “concerning” that KFC employees would have to sign over to KFCO to become eligible.And as for the old agreement with the union, Mr Benevides said: “As I believe KFC has stated publicly, it’s our view that there is no in-force Collective Bargaining Agreement at this time.”The matter is expected to continue to arbitration, once mutual terms of reference are established.