IUF affiliate in Panama signs new agreement with FEMSA

The IUF-affiliated Industrial Union of Workers in the Manufacturing and Marketing of Foods, Beverages, Soft Drinks, Beer, Liquor and Similar (SITRAFCOREBGASCELIS) in Panama reached an agreement with the Coca-Cola bottler FEMSA after more than a month of negotiations for a period of two years in September 2016.

During the negotiations the union targeted a wage increase of 9.5 percent. Finally the parties agreed for 8.8 percent of wage increase.

The President of the union, Alejandro John reported that the negotiations were more difficult than in previous years because the company sought more workload and would not recognize the salary increase sought by the union.

There is an additional clause which provides that whenever the minimum wage in Panama increases, wages of workers of the company will also increase by using a table of variations.

Reports indicate that in the second quarter of 2016 Femsa grew 11.7 percent in Latin America region compared to the same period of 2015 and 14.2 percent globally. In Panama, in its 14 years of activity, Femsa has managed to control more than 65 percent of the market for beverages and acquired a significant presence in other areas.

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