By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net EXECUTIVES of the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU) and KFC (Nassau) began negotiations on a new industrial agreement on Friday, with the union's vice-president telling Tribune Business talks appeared to be heading in the right direction. Last month, KFC warned its survival hinged on negotiating a reduced wages and benefits package for its line staff, saying it was currently "more than double" the industry average and making the company uncompetitive against ever-increasing competition. The restaurant said it was subject to the same operating costs as its competitors, but its wage and benefits package was more than two times' higher, describing this as "unsustainable" and needing to be reduced in a new industrial agreement. Darren Woods, vice-president of the BHCAWU, told Tribune Business when contacted on Friday: "We are still in discussions. There is some movement back and forth, but again until we get a definitive position that's where we are it. "I can say we began negotiations today (Friday), and a part of negotiations is a way to resolve that bonus issue." Mr Woods added: "There is still one particular aspect of it that is outstanding. It seems we are heading in the right direction and I am optimistic." KFC recently disclosed it had to secure additional financing to maintain its operations, although it was not clear whether this was equity or debt. In a statement last month, its general manager, Gabriel Sastre, said: "We have been facing some tough times. With the downturn brought by the global recession, the Bahamian economy has been hard hit. "We have all had to face increases in costs, which is a challenge for us all, including KFC. Our customers are also finding it difficult and have let us know that our prices are too high by not only complaining to us directly on Facebook and via customer focus group feedback, but also by their decision to start shopping elsewhere."