KFC: ‘Sustainable’ Changes Needed
Kentucky Fried Chicken issued a statement about the recent cancellation of their agreement with the Bermuda Industrial Union, saying that modification of the agreement is necessary for the company to be sustainable over the long term, and needed for the continuation of the business and preservation of existing employment.
On Tuesday [Dec.20] BIU President Chris Furbert held a press conference and said KFC cancelled the collective bargaining agreement, affecting approximately 36 employees, 15 full time.
“We are not going to sit by and allow employers like KFC and those others to come along and destroy those benefits that our forefather’s blood, sweat and tears have built over the years, and they are going to sit there are take them away? Not going to happen,” said Mr Furbert.
Union members sing solidarity songs outside KFC on Tuesday:
KFC said they notified the BIU in writing in February 2011 of their intention to modify the terms of the existing agreement which was due to expire on April 15th, 2011. Negotiations began in April and continued through to August 2011, but an agreement was not reached.
On September 9th, 2011 KFC issued the BIU with written notice of its intention to terminate the agreement pursuant to Article 38 of the Collective Agreement
The statement said, “KFC also agreed to enter into mediation with the BIU with the assistance of the Department of Labour. After several mediation meetings, however, KFC and the BIU were still unable to reach agreement on a number of critically important points which KFC’s Board of Directors deemed to be essential for KFC to be economically sustainable.
“It has consistently been, and still is, KFC’s position that modification of the CA is necessary in order to allow the company to reform its cost structure to a sustainable level over the long term and remain a viable enterprise. These changes are essential for the continuation of the business and preservation of existing employment.
“KFC, like many businesses in Bermuda, has experienced a trend of declining sales and increased operating costs leading to net losses..
“Now is not the time for emotions to rule. Bermudian staff, Bermudian owned companies and Bermuda itself are suffering and we must all work together to find solutions to our shared challenges.”
The full statement follows below:
Kentucky Fried Chicken (Bermuda) Limited (“KFC”) wishes to clarify certain remarks that have been made in the media over the last twenty four hours pertaining to the termination of the existing Collective Agreement (“CA”) between KFC and the Bermuda Industrial Union (“BIU”).
KFC notified the BIU, as the representatives of its unionized employees, in writing on February 1st, 2011 of its intention to modify the terms of the existing CA which was due to expire on April 15th, 2011.
Negotiations began in good faith in April and continued through to August 2011 but unfortunately KFC was not able to reach agreement with the BIU on the requested changes to the CA.
On September 9th, 2011 KFC issued the BIU with written notice of its intention to terminate the CA pursuant to Article 38 of the Collective Agreement which states:
“This Agreement shall come into effect on 15th April, 2008 and shall remain in effect for a period of not less than three (3) years and thereafter shall continue in effect provided that at any time after 14th January, 2011, three months’ notice of termination ormodification may be given by either party hereto.”
The effective date of termination, being end of day December 9th, 2011, was confirmed in the same notice. KFC also noted in its letter of September 9th, 2011 that it was prepared to work with the BIU over the next three months to reach terms for a new Collective Agreement between KFC and the BIU.
Subsequently KFC also agreed to enter into mediation with the BIU with the assistance of the Department of Labour.
After several mediation meetings, however, KFC and the BIU were still unable to reach agreement on a number of critically important points which KFC’s Board of Directors deemed to be essential for KFC to be economically sustainable.
It has consistently been, and still is, KFC’s position that modification of the CA is necessary in order to allow the company to reform its cost structure to a sustainable level over the long term and remain a viable enterprise.
These changes are essential for the continuation of the business and preservation of existing employment.
KFC, like many businesses in Bermuda, has experienced a trend of declining sales and increased operating costs leading to net losses.
The CA, which was in place through December 9th of this year, did not anticipate the changes in the economic environment that have occurred since 2008 and the economic realities that all business in Bermuda, especially those in the hospitality industry, are facing today.
KFC is committed to our staff and to maintaining their employment and an industry leading package of remuneration and benefits, not least of which is providing a reliable pension scheme.
A recent review of details of the Restaurant Pension Fund prompted KFC management to make application to the Pension Commission to transfer employees’ pension participation from the Restaurant Pension Fund to an existing registered pension scheme.
KFC believes that this is the appropriate and prudent course of action to protect the interests of its employees. KFC has advised its staff that the company will continue to collect employee pension contributions and set aside employer contributions in accordance with the requirements of the National Pension Scheme (Occupational Pensions) Act 1998. Pending final approvals from the Pension Commission, funds so collected will be held in escrow for ultimate deposit to employee pension accounts.
KFC remains committed to working with the BIU, or such other representatives as our employees specify, to establish a new Collective Agreement, and to ensure the continued well-being of our staff in these difficult economic times.
With the continued cooperation of our employees, KFC will continue to offer quality products to the public and employment opportunities for Bermudians. Now is not the time for emotions to rule. Bermudian staff, Bermudian owned companies and Bermuda itself are suffering and we must all work together to find solutions to our shared challenges.
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so what is the BIU’s problem?…the contract terminated; unable to agree on a new one; game over.
That not how it works ass,you are violating rights of the worker, management can’t terminated a agreement so that the worker won’t be long to the union that I against the law…….
…went to the school as brother ludaChris??
They lack negotiating skills…..Otti only marched or called a strike as a last resort. That joker in charge now wants to put on the boxing gloves straight away. Saddening
Agreed!
He is one of those tiny, snarly, ratty, matted-hair stray dogs that barks, bites and lunges at everyone around him – even the hand that feeds him. Can he even speak in a regular tone of voice at a regular level of volume – and without slobbering on people? Poor mangy mutt – KFC may just close their doors and send him off to “live on a nice farm in the country…”
I must add this: I am a dog lover so maybe, just maybe, if he mends his ways, I will take pity on him, pay for him to be groomed, get him some obedience lessons, THEN “bring him to live on a nice farm in the country” – some OTHER country perhaps…
This is one of the funniest comments I have read in a while!!
MM, it would seem that way. What is the problem. If a company is about broke, thats it. No point in even trying to carry on if the the game plan does not change. Contrary to what Government believes, money does not fall from the sky. KFC board is answerable to its shareholders. They are not a charity, contrary to what the BIU seems to think. The company does not exist to simply provide paychecks, again contrary to what the BIU believes.
It appears the staff are in a position of take what is offered or go home & stay home. The jobs will be history just like so many hotel jobs which have disappeared in the past 13 years. Great going there BIU. Much credit goes to your current & past leader.
TD if you are a leader of the BIU money does indeed fall from trees…I believe he may meet his match on this one as he is not dealing with The Government but people who have actually earned their money and dont want to see it keep going out the window….unlike Government
The jobs will still be there, its up to the employees to decide if they want to keep their jobs under different terms, or let others that will happily accept those terms replace them. BUI really has no negotiating chip right now – call a strike, guaranteed they can ALL be replaced before the new year.
Sh*t,I dont need benefits or vacation or whatever these fools are arguing for (Don’t care enough). Give me a part time job there. I can work nights from 5:30 till closing.
Me too!…..I’ll show up to work everynight after leavin my day job. I’ll work holidays and weekends. I’ll take my vacation days from the day job to work KFC. I just need $500/week and free chicken to feed the family!(I’m from here….HONEST I AM)
HELLO WELCOME TO KFC, MAY I TAKE YOUR ORDER
See, I’m already trained you know
Had a good laugh – thats funny. Hello Welcome to KFC
You are a count
Agree with all three comments above! Cant’ believe that many WORKERS (blue collar & white collar) do not know that the Employers Act does protect them too as the BIU management is only interested in protecting getting the members dues for their own big fat paychecks!
Yes, they get the dues for representing the public, the union staff are like defense lawyers, one big law firm, they will protect you no matter what, and that’s a good thing for people who are abused or abuse the system.
And just in case these employees were not aware….union membership is O P T I O N A L. Carry on…
WOW!!!!! With these economic hard times, it appears that people are more concerned about the “person” at the BIU rather than the “people” affected by the actions of KFC Bermuda.
Be clear, just as you all thinhk the BIU is fattening their pockets off of its members, so is The Gibbons-KFC off their employees.
So who’s worse???????????
Gibbons dont have anything to do with KFC.
And as the company is losing money, the shareholders are certainly not fattening their pockets. They are subsidizing the employees!
Umm… get your facts straight before commenting please. KFC was a publicly traded company on the BSX until Friday October 7th of this year. There is no references anywhere to Gibbons having anything to do with KFF. Further, the last set of published financials showed the Company operating at a net LOSS for the first half of the year of $20,933 and declared no dividends to shareholders. Hardly “fattening their pockets”…
Correct Hudson….
KFCB has for the past 5-6 years been running with the smallest of profit margins.. with an average net profit around 150k.. (And at a loss for this year) Less I believe that the BIU president makes and less than most Government Ministers.
If they are going to stay in business and employ staff, then they have to cut expenses..
If Bermuda had a real university then you could actually compete with expats and take the better jobs or move to a different country to better your opportunities as expats in most cases had to do. Lobby goverment for better education services so you dont have to work for kfc. Everyone has a choice and accepting benefits from unions …. well it didnt start there. Get a real life game plan.
Bermuda has many people who are University educated but are turned away from Ex-Pat type jobs because we dont have the experience. How does a college grad gain experience is the reason why our Degree’s fail us. I experienced that when I came back to Bermuda. Your either over qualified or under qualified.
As a Bermudian that has been highly educated (ie i hold Masters Degree) – I find your comments offensive.
For the most part many Bermudians are educated – there are a small minority that do no have a higher education.
For those that do not hold a college degree, they are as important to our society than the next person.
@ idea just remember when you are bashing Bermuda and Bermudians,that your own country could not do for you want a company enjoying Bermuda could, hence the reason why you are here. A company in Bermuda is so much better than anything your country can offer you…so be a good guess, and we promise to be a good host..
“do for you what a”
I’m not against workers rights, but the employment act is the legal holy grail. Nothing more and nothing less is a guaranteed right. I do have a problem with KFC. The product is an unhealthy, grease laden, artery choking, poison filled icon of American Fast Food that we don’t need here. How the hell did Lines manage of get that franchise on-island is no mistery…..good enough for a Lines, but when Swan and Burgess tried that stunt with McDs all hell broke loose. But hey, no love lost there either. Rich bastids representing every shade of the color spectrum are loosing like the rest of us bottom feeders. Greed is not good, it kills, wether its food or money, or unions for that matter.
Hey, you’re right about KFC but you have a choice and don’t have to eat there. In fact, we all do, and hence with people now getting wiser about their eating choices, coupled with having less cash to spend on such “pleasures”, the Company is now operating at a loss. Sooo, they need to either make changes to put them in a net positive position or close their doors. They are not infringing on anybody’s rights in not renewing their union contract. They didn’t do anything illegal or immoral. They are simply trying to stay viable or get out of business. Amazing to me that the BIU think they have any bargaining power at all… they have NONE. WAKE UP BERMUDA!!!!
I agree. If someone thinks the food may or may not be healthy, they have a free choice about whether to buy it or not. You could level the ‘greasy unhealthy food’ accusation against almost all fast food restaurants, including the ones in Bermuda.
KFC is just trying to stay in business, and do it in a way that is economically sustainable. Currently it isn’t. The BIU has to join the dots and work out what that means.
All clogged up – it was a publicly traded company so you had many chances to buy into the company so it has nothing to do with “rich bastids”.
They are trying to keep a business floating and expenses are killing them – business 101 – reduce expenses to keep it going or pull the plug on the business.
Guess who profits then – staff out of work and no sick days?? Bro Furbert will not help them then. BIU does not have the money – go figure.
I love KFC. have you tried their gravy? the best! hahaha…