NASSAU, Bahamas - KFC Nassau today canceled its voluntary recognition of the Bahamas Hotel Catering and Allied Workers Union (“the Union”) as the bargaining agent for employees at KFC Nassau. The cancellation is stated to have immediate effect. The decision came in the wake of five months of negotiations after the expiration of the labour agreement that previously governed the relationship. These negotiations have yielded no significant movement on the most important financial points of contention.

Today’s decision means that KFC Nassau will no longer meet, consult or engage with the Union on matters pertaining to the terms and conditions of the company’s workers. As a result of the cancellation KFC Nassau will be dealing directly with its individual employees regarding their terms and conditions of employment.

Many KFC employees refused to work today, instead staging a sit-down protest that was directed by the Union. KFC Nassau was forced to temporarily close its nine stores until further notice. The company apologizes for any inconvenience caused and assures the public that it will reopen as soon as possible.

KFC Nassau assures the public that it has tried every alternative before arriving at this position. The company made numerous efforts to get the union to appreciate its financial positon and that, to remain viable, the company must adjust its employee benefits package to be in line with the norms of the sector in which it operates.

The company long sought to renegotiate the wage and benefits package in a new labour agreement, but months of negotiation produced no meaningful movement on these points. KFC Nassau made it clear that on 20 February, 2012, it would be forced to unilaterally offer its employees an employment package that maintains their existing wages and a guaranteed 7.5 hour work day. This is now in effect. The company has also offered to consider a voluntary severance package for any employee who may not wish to work under the new terms and conditions.

A spokesman for KFC said “The company thanks its employees for their continued guidance and support in helping KFC Nassau sustain its business operations in today’s increasingly competitive environment, and to our loyal customers who have stood by us during this difficult time. While the decision to rescind the voluntary recognigiton of the BHCAWU is drastic, we have no other alternative. Our only concern is saving our business and the jobs of our employees.