Call # 273 (from 9 June to 20 August 2004)

When it comes to symbols of global competition, Coca-Cola and Pepsi-Cola are certainly on the list. These two rival emblems of capitalism and North American taste, present in the remotest corners of the earth, are engaged in an on-going war for the best markets, outlets, bottlers, sellers, sponsors, etc., a daily struggle involving billions of dollars and rich dividends for shareholders. But when it comes to human rights this war is being waged at the expense of the companies’ workers. On production sites the ’best’ way of limiting workers’ rights is still discrimination against unionized labour. In Guatemala, 66 union members employed by CabCorp, Pepsi Cola’s local bottler, were dismissed in October 2002, without any explanation. Since then 30 of them have maintained their mobilization and demand to be re-employed at the factory. Following a fruitless meeting with the State President, and supported by the IUF(1), they are calling for pressure on the company to be stepped up.

Fifteen months ago the former employees of Pepsi-Cola pitched a tent on the main square of Guatemala Ciudad, the country’s capital city. Since then they have maintained a constant presence on the square, despite the contempt of the media (that rely on the multinational’s advertising), nightly threats from unidentified armed thugs, their families’ financial difficulties, etc. Their main support in the country is from the union FESTRAS(2). ’The company sent black lists all over the place so that we wouldn’t be able to work or eat. And today they’re including our wives and children on these lists (...). There are colleagues who’ve already got lots of debts and that have been evicted from their homes’, one of them explained.

The current conflict started in 2000 when the union called for negotiations on a new collective labour agreement to replace the one that had expired. The management of Mariposa (the bottler now called CapCorp) refused to negotiate and launched a persecution campaign against union leaders. This campaign culminated on 5 November 2002 when 99 workers were fired, 66 of whom were union members. The official reason was restructuring to solve a problem of overstaffing but the ’excess’ workers were soon replaced by non-unionized workers, at lower wages.

Contravention of the collective labour agreement and the Labour Code

These acts were an explicit contravention of the collective labour agreement and Guatamalta’s Labour Code, and on two occasions the Labour Court ordered the workers’ re-employment. However, not only did these court rulings go unheeded, the Mariposa management stepped up its efforts to dismantle the union. For instance, it offered better wages to workers who left the union, harassed others to force them to leave, created diversion by claiming that the union was in the pay of Coca-Cola, etc.

This strategy was partly successful: the general secretary of the union turned his coat, agreed to the renewal of the former collective labour agreement and deserted his former colleagues who had been sacked. About 30 of them remained determined, however, and engaged in a long drawn-out struggle. They have refused all offers of compensation and are demanding, inter alia, an end to violations of trade union rights, the immediate re-employment of dismissed workers, the negotiation of a new collective labour agreement, and compliance with labour legislation.

An emblematic struggle at a time of major change

In April 2004 the sacked workers were granted a meeting with Oscar Berger, the new State President, whom they asked to guarantee recognition of their union rights by ensuring that the court decisions were applied. The authorities nevertheless insisted on mediation to increase the amounts of the indemnities offered. The fact that the President’s spokesperson is none other than Pepsi Cola’s human resource manager, who helped to finance his election campaign, is worth noting.

This event nevertheless revived the mobilization. At the request of FESTRAS, the Latin American head office of IUF and then its international secretariat launched a campaign targeted at the Guatemalan franchise Cap Corp and PepsiCo Inc.

In Guatemala it’s Pepsi-Cola that has the advantage over its rival Coca Cola. Pepsi recently entered into partnership with AmBev, a Brazilian company known for its anti-union practices. In the past few years the Latin American beverages industry has been the scene of an increasing number of mergers and acquisitions between multinationals. The march goes on towards ever-more economic and financial power, in defiance of basic social rights that in many cases would not survive without the efforts of civil organizations.

(1) International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations

(2) Federación Sindical de Trabajadores de la Alimentación, Agroindustrias y Similares

For more information

An unusual tour:

In August 2003 sixteen people went on a tour to Guatemala organized by Réseau-Solidarité. The discovery of this country was punctuated by meetings with actors from civil society. In the capital the travellers and the Réseau-Solidarité representatives spent a long time on the main square talking to the sacked unionists from Pepsi-Cola. The next day they decided to each contribute something to support them: a symbolic and financial gesture that was greatly appreciated by the workers.

Twenty years ago:

In 1984 Réseau-Solidarité launched two urgent actions concerning Coca-Cola. After several months of struggle supported by international mobilization, the workers obtained the creation of a trade union. Today the heirs of that union are supporting their colleagues at Pepsi, through FESTRAS.

Call in liaison with:

IUF (cf. note n°1) http://www.iuf.org/fr

What to do ?

Note: in France this action is accompanied by a post card campaign addressed to Pepsi Cola France.

By letter: copy or download the standard letter below by clicking here.

Don’t forget to date and sign your letter and to add your name and address.

By e-mail: write to fundacion@cabcorp.com

Cc to : festras@terra.com.gt and jgallardo@mintrabajo.gob.gt

By a letter to:

Date:

Señor Alvaro Castillo

CABCORP

Bl Los Próceres 5-56 - Zona 10

Unicentro Nivel 12

Guatemala Ciudad

Guatemala

Estimado Alvaro Castillo,

Por medio de la Red Solidaridad Francia (Réseau-Solidarité, 10 quai de Richemont, 35000 Rennes - France) me enteré de que despidieron ilegalmente a trabajadores de CabCorp en noviembre del 2002.

Desde más de 15 meses, treinta de ellos han instalado una tienda de campaña en la Plaza de la Constitución, para reclamar su reincorporación a la empresa.

Le rugo que atienda las peticiones de esos despedidos, de la FESTRAS y de la UITA para:

  la inmediata reinstalación de los despedidos,

  el pleno ejercicio de la Libertad Sindical,

  la negociación del Pacto Colectivo Condiciones de Trabajo.

En espera de su pronta repuesta, le saludo atentamente.

Translation of the body of the letter:

Dear Sir,

I have been informed by Réseau-Solidarité of the illegal dismissal of CapCorp workers in November 2002. For the past 15 months, thirty of them have been occupying a tent on Constitution Square, demanding their re-employment by the firm.

I urge you to meet the demands of these dismissed workers and of FESTRAS and the IUF, concerning: their immediate re-employment; full trade union rights; and negotiation of a collective labour agreement.

Thank you for your prompt attention to this matter.

Yours faithfully,

(signature)

(name)