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PRESS STATEMENT Contact: Chris Furbert 292-0044 cfurbert@biu.

bm May 3, 2012 BIU PRAISES MINISTER FOR ABIDING BY THE LAW The BIU and its membership are happy the Government has abided by the law and referred the dispute between the BIU and KFC to Arbitration under the Labour Disputes Act 1992. We look forward to the publication of the notice in the Official Gazette. We have been passed a copy of the notice by the office of the Minister of Economy Trade and Industry. The BIU trusts that KFC will now abide by the law and resolve the dispute in arbitration. Some members of the public may wonder why a meeting of the General Membership took place today. There are several reasons;
a) Section 30L of the Trade Union Act 1965 imposes a legal duty on employers whose workers have certified a union as its bargaining agent to treat that union accordingly and to negotiate with the union for the purpose of collective bargaining. In the case of KFC, the BIU is the certified bargaining agent responsible for negotiating on behalf of KFC workers. KFC does not want to negotiate with the BIU even though the law requires it. KFC has chosen to attempt to terminate the Collective Bargaining Agreement in place for the benefit of KFC workers and is in the process of preparing new terms and conditions of employment for those workers without negotiating with the BIU. The BIU executive believe this behaviour has the potential to affect all workers because it demonstrates a willingness on the part of an employer to ignore its legal obligations for its own benefit even if this means the workers suffer a detriment as a result. b) The dispute between KFC and BIU concerns the terms and conditions of employment of KFC workers. Some of the specific issues are; 1. 2. 3. 4. 5. The Health and Safety of the workers of KFC; The Remittance of the Pension Funds to the Restaurant Pension Fund; The Employer Pension Contributions; Training; The Duration of the Collective Bargaining Agreement;

6. Schedules 1-5 of the current Collective Bargaining Agreement (pay and benefits). 7. Termination of Sister Valerie Adams These are fundamental rights the employees are entitled to. The BIU and KFC have not been able to agree on these issues and others. The proper course of action when a dispute arises between an employer and a union is for the dispute to be referred to arbitration if they cannot be otherwise resolved. KFC has taken the drastic step of attempting to terminate the Collective Bargaining Agreement between it and the BIU instead. This undermines the labour relations between KFC and the BIU and has the potential effect of doing the same between the BIU and employers generally. c) By attempting to terminate the Collective Bargaining Agreement between the BIU and KFC, KFC are also refusing to negotiate with the BIU with respect to the pay of KFC workers for 20102011. KFC have not been willing to discuss an increase in the pay for its workers for that period despite previously agreeing to negotiate this matter in good faith. They cite reasons of declining profitability. We have seen the audited financial statements of KFC for the year ended 31 January 2011 and note that despite this declining profitability it appears to us that the directors have seen fit to pay KFCs shareholders dividends for both 2010 and 2011. The membership of the BIU has agreed that the boycott of KFC will be called off if; 1. The Collective Bargaining between KFC and the BIU is reinstated with immediate effect until after the dispute between KFC and the BIU is resolved; 2. Reinstatement of Valerie Adams; and 3. KFC agree to participate in the Arbitration of this dispute in good faith.