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Balloting threatens Coca-Cola summer fizz

By Neil Merrett, 25-Jun-2007

Related topics: Financial

Coca-Cola faces serious disruption to one of its major European bottling plants as workers threaten a series of 24-hour strikes during the busy summer period.

Strike ballot papers were distributed Friday to workers at Coca Cola Enterprises (CCE) production plant in Wakefield, England, after 95 per cent of its 517-strong workforce rejected the company's 2.5 per cent pay rise.

 

 

 

The action could be an important test of the company's resolve, as growing competitiveness within the soft drinks market, driven by changing consumer tastes towards health force beverage producers to drive cost cutting measures.

 

 

 

With the Wakefield site alone producing some 200 million cans of the group's beverages a week, any industrial action could dramatically affect output of some of the group's leading brands including Coca Cola, Oasis, Dr. Pepper amongst others.

 

 

 

Kelvin Mawer, regional officer for union group Unite, said that when compared to Coca-Cola's performance during the year, their pay offer was a "kick in the teeth" to its workers.

 

 

 

The CCE offer is below the rises retail price index (RPI), he said.

 

 

"How can a business like CCE expect its employees to accept a pay offer far below the RPI when the same employees have contributed to the success of the business," he stated. "If one of CCE's priorities is to attract and retain a highly talented workforce with a winning inclusive culture as stated by CCE's president and chief executive officer, then all employees must share in the company's success by receiving fair pay and conditions."

 

 

Unite has therefore called on CCE to return to the negotiation table in a bid to flesh out a new agreement.

 

 

 

A spokesperson for Coca-Cola stressed that negotiations had yet to concluded between the two parties involved.

 

 

 

"As negotiations are ongoing, it would be inappropriate to comment on specific detail at this time," the company stated. "Coca-Cola Enterprises remains committed to constructive dialogue with our employees and representatives."

 

 

The group added that it hoped to find a solution that best suited everyone involved in its operations.

 

 

 

"Decisions made by Coca-Cola Enterprises on employees' pay and rewards reflect our responsibility to protect the future vitality of our business for the collective benefit of the company and our employees," the spokesperson added.

 

 

 

The possibility of strikes continues an already difficult year for CCE, with similar actions being threatened by its US workforce in April, amidst the announcement of 3,500 job cuts resulting from its restructuring plans.

 

 

 

Speaking at the time, company chief executive officer John Brock, suggested that all changes being made were in line with the changing demands of consumers on the soft-drink industry.

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