IUF/Coca-Cola Meeting

IUF/Coca-Cola Meeting

February 28, 2007 Atlanta, Georgia, USA

- OUTCOME -

Agreed action points

1. Trade Union and Worker Rights Issues

Guatemala

• STECSA/Embotelladora Central

- The IUF will forward TCCC copy of

(1) Embocen management's strategic presentation to pressure STECSA to give up existing conditions and requests in the current CBA negotiations

(2) the documents which certify the transfer of Embocen's assets to legal entities "Tripoli" and "Apoyo Industrial" (to be forwarded by STECSA to IUF).

• SITINCA/INCASA

- TCCC will look up information on the conditions regulating the TCCC-INCASA franchise agreement and will get back to the IUF concerning

(1) its duration

(2) the next date for its renewal/renegotiation

(3) any sanctionatory mechanism enshrined in the agreement that could be applied in this case.

- The IUF will provide TCCC copies of the new material collected by SITINCA on the anti-union and related activities conducted by INCASA management.

- The IUF will also collect and forward TCCC pictures of the "solidarista" trucks with both visible "solidarista" and Coca-Cola logos and the date the picture was taken.

Haiti - Bracour

The IUF suggested Batay Ouvriye that – in case they wish to make a proposal on union-management relation building. The IUF will get back to TCCC on the outcome of this proposal.

2. Restructuring, outsourcing and work casualization in the Coca-Cola system

Europe

• Union/company dialogue in Europe

A meeting between senior TCCC management (both from Atlanta and EU HQ) and the IUF Regional Secretary for Europe – EFFAT is scheduled for 10 April 2007. The meeting aims at the establishment of a well-functioning communication mechanism/channel with senior EU management for the early identification and joint resolution of problems arising in the region.

Japan

TCCC provided the name and contact details of the recently installed management responsible for Japan. Issues of investment into production facilities and human resources raised by the Japanese Coca-Cola union representative will be addressed in future dialogue with the new Human Resource Director for Asia.

3. Discussion of the IUF proposal for an international union rights and recognition agreement between the IUF and Coca-Cola

The IUF and TCCC agreed on a meeting between a small group of anglophone IUF affiliates and a TCCC team to take place around 12 April 2007 in Paris.

The first task of the restricted group meeting will consist in discussing issues related to par. 1.3 and 1.6 of the IUF proposal and workout general language issues in the text.

4. Next meeting (date and venue)

The next IUF/TCCC meeting is scheduled for 24 October 2007 in Atlanta.

On this occasion, the IUF team will meet Mukhtar Kent.

The IUF team preparatory meeting will take place on 23 October 2007.

Additional IUF proposals for TCCC action

1. Trade Union and Worker Rights Issues

Guatemala

• STECSA/Embotelladora Central

- The IUF requested that TCCC works with FEMSA on this case as a matter of priority in order to

(1) ensure that conditions in the new CBA are better, not worse than the older one

(2) price dumping in the territory of Embocen is halted and the documents of the complaint filed by Embocen are made accessible to STECSA

(3) guarantee that in case of closure workers are fairly compensated as they deserve and that the asset transfer and the "bad performance" of the bottler is not used as a justification to deny this right

• SITINCA/INCASA

- The IUF requested that TCCC sends a strong signal to INCASA that TCCC will not continue working with them unless INCASA

(1) dismantles the "solidarista" organization

(2) halts its union discrimination practices within the next 6 months.

USA

• CCE

- Reporting on the fire/rehire policy CCE is implementing at its San Diego/Oceanside facilities, the IBT requested that

(1) CCE immediately gives workers from the San Diego plant the opportunity of direct transfers to the new Oceanside facility (30 miles/48 kmt away)

(2) workers' pay, benefits and seniority are maintained and conditions are not worsened in the transfer

(3) CCE ensures continuity for the IBT as bargaining agent at the new plant/card check neutrality – this depends on whether all workers are transferred or on whether new workers are hired

- The IBT requested TCCC to disclose their vote policy in the CCE board of directors meeting on the massive job axing of 3,500 announced on 13-02-2007

• Card check neutrality legislation

The IBT also requested TCCC to provide information on their official lobby position on the card check neutrality legislation proposal currently under examination at the US Congress.

CCHBC- update

On 16-02-2002 the IUF made a concrete proposal to CCHBC, concerning union rights in Russia. The IUF is awaiting feedback on this proposal from CCHBC.

2. Restructuring, outsourcing and work casualization in the Coca-Cola system

Europe

• CCE restructuring

- European unions representing CC workers across CCE, CCHBC and TCCC in the EU strongly reiterate that Coca-Cola management must fully comply with EU legislation by engaging in meaningful consultation with unions over the future plans for the company and before any decision is made on further restructurings.

The Philippines

• Employment guarantees after TCCC's takeover of CCBPI

Now that TCCC has 100% ownership of CCBPI, the IUF reiterated its long-standing requests on this issue, notably that

(1) CCBPL management meets with ACCUP representatives before the end of April 2007 and illustrates what is the plan for recovery. The IUF suggested that the meeting is held at a national level in Manila. If needed, the IUF will include representatives of the ACCUP affiliated Federations in the meeting.

(2) TCCC/CCBPI clarifies its responsibility vis-à-vis SMC on

- the upcoming CBA negotiations during the "transition" period

- the continuation/discontinuation and implementation of outsourcing programmes recently initiated by SMC, including Integrated Service Management System (ISMS)

(3) TCCC issues a signed guarantee that there will be negotiations over any changes that impact employment security, benefits and conditions of union members as per wording already provided in the 20-10-2007 meeting.

• Excessive outsourcing & related practices

Holding that the resolution of the outsourcing issue in the Philippines could be greatly facilitated by a meeting between CCBPL management with ACCUP, the IUF reiterates the requests it already filed with TCCC on behalf of ACCUP as follows:

(1) the regularization of positions currently staffed by contractual workers in violation of the scope and covered of CBAs. On top of the extensive documentation already provided to TCCC, the IUF will further provide copies of the pictures and a video that proof CCBPI practices of replacing union members positions covered by CBA and falsely declared "redundant" with 5 month non-renewable contract workers paid the minimum wage.

(2) management practice of unilaterally declaring positions redundant without prior consultation with the union must be stopped

(3) start a joint review by management and the union as soon as possible to review those positions declared redundant to determine whether or not this is true. The documentation provided by the IUF on 20-10-06 provides a specific sample to start the investigation.

(4) excessive outsourcing must be halted and its negative impact on job security and declining sale/market shares must be jointly reviewed by management and unions

(5) full disclosure of the sections of TCCC's Global Audits for the Philippines that refer to non-compliance with regard to regular employee positions. The IUF provided TCCC a copy of the notice posted on the company board at the General Santos plant stating that auditors found the plant in breach of minimum regular worker quota requirements for bottle inspection.

(6) as per the above item, for TCCC/CCBPI to clarify responsibility onthe continuation/discontinuation and implementation of outsourcing programmes recently initiated by SMC, including Integrated Service Management System (ISMS).

Korea

- The IUF illustrated to TCCC the concerns of Coca-Cola Korea Bottling North, Southeast, and Southwest Unions. More specifically, these unions

(1) Strongly oppose to any proposed sale of CCKBC by CCA and are available to discuss alternatives

(2) Request to be meaningfully consulted prior to any major restructuring and/or sell-off and that TCCC and CCA provide accurate and timely information so that negotiations can proceed in good faith.

(3) Request the disclosure of CCKBC business plan, audit companies’ evaluations, possible sale arrangements and any CCA's strategies for recovery, in particular the assessment of “growth and other structural initiatives” by McKinsey & Co that was jointly commissioned by TCCC and CCA. TCCC agreed to provide information on the assessment, including its parameters, timeframe and whether visits to the CCKBC plants will be made as part of the assessment. IUF also stated that the 3 CCKBC unions should be given the opportunity to give input into that assessment process.

(4) Request that TCCC contact CCA to ensure that there is a meeting between CCA and the 3 Korean unions.

- The IUF provided TCCC a copy of the 23-02-2007 letter addressed to CCA Chairman David M Gonskient by the 3 CCKBC unions. The IUF additionally requested that TCCC ensures that CCA responds to the specific issues, addressed in the letter, notably guarantees on trade union recognition, CBA renewal and employment security in the "transition" and post-transition period and compliance with CBA provisions regarding employment security.

USA

Concerning CCE's and the independent bottlers' ongoing plans for implementing Powerade direct delivery to Wal-Mart and other low-price retailers' warehouses, the IUF, RWDSU/UFCW and the IBT reminded TCCC the request that the results emerging from the "test" are to be discussed with unions before the new delivery system is applied any more widely.

Canada

- The CAW raised the issue of the further job losses in Canada due to student protests around the Killer Coke Campaign and called on Coca-Cola to resolve the issue once and for all.

- The CAW requested TCCC to provide specific information on the restructuring plan for Canada.

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