KFC reveals payroll details in contract spat

Wed, Feb 1st 2012, 10:46 AM

A pension fund payment, a health and welfare fund and 18 pounds of ham and turkey at Christmas are just a few of the perks embedded in the contracts of KFC workers.
Cooks, food service workers and customer service employees make nearly double that of equivalent employees working for the competition, according to a payroll disclosure by KFC management.
Whereas a cook, for example, makes $358 per week at KFC, the competition pays out just $200.
The details from KFC's Nassau office were published in one of the country's daily newspapers on Tuesday. It serves as the latest blow in an ongoing fight between KFC workers and management at the fast-food chain.
The two sides have been trying to negotiate a new industrial agreement since October of last year. Management has claimed since the beginning that wages and benefits of KFC workers must be brought in line with industry standards and reflect the current economic conditions.
Darren Woods, secretary general of the Bahamas Hotel Catering and Allied Workers union (BHCAWU), said he's surprised at the level management has "sunken to".
"Workers didn't just get those salaries and benefits. They didn't put a gun to their head," he told Guardian Business. "They have been in negotiations for years. There was a signed contract. Those people go to work and they perform for the money they make. They didn't get all of that by accident. They were negotiated over many years."
According to the KFC, employees are guaranteed a seven-and-a-half work day under the current contract, whereas the competition provides no such assurances. KFC workers receive $1,066 annually as a pension fund payment, $420 annually for the health and welfare fund,  and two-and-a-half weeks of bonus pay at Christmas.
Management claims none of these benefits are offered by the competition.
Under the current contract, workers also get 21 paid sick days per year, an average of 18 days of paid vacation and a long-service payment for employees that have been with the company for eight years or longer, equivalent to two weeks pay.
The publishing of wages and benefits is consistent with a more aggressive stance toward negotiations. Last week, Guardian Business reported how the company posted a notice in both major dailies declaring a new wage structure will be enforced on February 20.
The ultimatum sparked outrage at the BHCAWU.
Woods said the two sides plan to meet today to discuss the areas of possible concessions, although optimism isn't at an all-time high for the BHCAWU.
"I'm surprised at the level they have sunken to," he added. "I don't know what they are trying to get out of it. At the end of the day, we cannot agree with the reduction of salaries."
Winston Rolle, the chairman of the Bahamas Chamber of Commerce and Employers Confederation, said many contracts in the past were negotiated during different economic times.
In the case of KFC, concessions must be made for the greater good and to save jobs. KFC is one of the oldest franchises in the country, he added, and rising competition and increased prices for goods have squeezed companies considerably.
"I also think what you find is other entities are in a non-unionized environment," Rolle explained. "A lot of these contracts were also negotiated at a different stage of economic activity. You would like to think they will find a medium ground here. The last thing you want is people losing jobs."
As a business owner, Rolle told Guardian Business that cutbacks are never pleasant, but sometimes it is a "fact of life".
While he didn't know what has to be done in this specific case, he expressed hope that approximate adjustments are made to ensure the longevity of KFC.
"Costs are rising but you also have competition coming from all sides. Businesses must make adjustments," he said.

Click here to read more at The Nassau Guardian

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