South Africa: Coca-Cola Sabco Plans to Retrench 300 More

BEFORE the start of a bleak Christmas season there will be retrenchments at Coca-Cola Sabco plants and units.
Coca-Cola Sabco notified the Food And Allied Workers Union (FAWU) on the 9th October 2008 that they intend to lay off 300 workers across their plants and units throughout South Africa by end of October.
Coca-Cola Sabco operates in seven Southern and East African countries and five Asian countries, and employs more than 9500 people. Coca-Cola Sabco's reach stretches to its bottling plants in South Africa, Namibia, Tanzania, Ethiopia, Uganda, Kenya, Vietnam, Sri Lanka, Nepal and Cambodia.
It operates 25 bottling plants and aims to fulfil the refreshment needs of more than 240 million consumers that live in its markets.
The reasons provided by the company are:
i) That the sale performance of the company for 2008 is down.
ii) The shortage of CO2 in 2007 and 2008, However we are not aware of any shortages of CO2 in 2008.
iii) They claim that the cost of labour is too high & it's above the inflation rate in South Africa.
We believe that once they have concluded this exercise successfully in South Africa they might start the same process in other countries in Africa and Asia.

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