Organizing a press meet in the capital on Monday, officials of All Nepal Revolutionary Hotel and Restaurant Workers Union of Devyani International said the abrupt decision to shut operation of KFC and Pizza Hut outlets was against the Labor Act.
Citing labor issues, Rohit Kohli, director of Devyani International, on Sunday informed that RJ Corporation -- the parent company of Devyani International -- had decided to shut KFC and Pizza Hut outlets in Nepal with immediate effect. KFC and Pizza Hut outlets at Durbar Marg and Blue Bird Mall, Thapathali have remained closed since May 13."We have heard that the management, citing issues with employees, has decided to shut KFC and Pizza Hut outlets in Nepal," Keshav Bhujel, secretary of the union, said, adding: "Employees have nothing to do with the closure."
According to Bhujel, the decision to shut down KFC and Pizza Hut outlets is the result of growing conflict between management teams of Devyani International and Varun Beverages.
Varun Beverage, a sister organization of RJ Corporation, is the bottler of PepsiCo products in Nepal.
"We have come to know that the management of Varun Beverages is interfering the daily works of Devyani International," Sita Ram BK, president of the union, said. Stating that the decision to shut KFC and Pizza Hut was against the Labor Act, BK said: "If the management had problem with employees, it should have come to us."
BK also said the management of Devyani International had recently transferred 16 managers working with KFC and Pizza Hut to outlets in India going against the company rule.
"As majority of workers have been affected by the earthquake, the management should try to resume operations at the earliest instead of quitting Nepal," he added.
Urging all stakeholders to do the needful for resuming operations of KFC and Pizza Hut, the union has warned that it would announce protest programs if the outlets do not resume soon.
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