Pay dispute that 'severely' impacted KFC chain over the weekend goes to mediation

Monday, 20 May 2019

A pay dispute that led to strikes at KFC stores over the weekend is heading to mediation.

Unite union national secretary Gerard Hehir said he received an email from the company on Monday morning requesting mediation next week, and the union had responded that it was open to that. 

NZX-listed Restaurant Brands, which owns the KFC, Pizza Hut and Carl's Jr fast food chains, later confirmed both parties had been approached by the Ministry of Business, Innovation and Employment's Mediation Services unit.

'Restaurant Brands can confirm it is happy to continue discussions via this third party,' the company said in a statement. 

Hehir said industrial action by its members had 'severely impacted if not closed' most KFC stores around the country over the weekend. Restaurant Brands in its statement apologised to 'customers and employees impacted by the weekend's events'.

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Before being contacted about mediation, the union had been contemplating further industrial action which could have included KFC staff agreeing to take breaks at the same time, go-slows and partial strikes, he said.

No timing had been set for further action, but Hehir said stores could have been impacted again as soon as this weekend had there been no dialogue.

But Hehir said the union was open to talks and wanted to see the dispute resolved.

The dispute stems from union members' concerns that pay differentials for skilled and trained staff would reduce as a result of increases to the minimum wage and a minimum $18 per hour pay rate introduced by competitors including McDonald's.

Restaurant Brands previously said about 1500 unionised employees wanted increases of more than 7 per cent on all existing wage rates.