Nicaragua: IUF affiliate signed a new contract with FEMSA reducing outsourcing

After two weeks of intense negotiations, the Union of Workers of the National Soft Drink Industry S.A. (SUT-INARSA) and Coca Cola FEMSA signed the new collective bargaining agreement which contains 74 clauses and will be valid for two years.

The Convention was signed on May 13 and established an average of 15 percent increase in economic terms, in some cases reaching 18 percent, for example for social benefits (food packages, productivity bonus, perfect attendance, uniforms, transportation, etc.).

Last April, the parties had already negotiated a wage increase of 5.5 percent for the production area and 4 percent for the rest of the staff.

"We are very pleased by the outcome of the negotiations that fully met our expectations. We achieved a significant increase in economic terms and we are moving towards the termination of outsourcing in the company, "said Noé Morales, Secretary of Labor Affairs of SUT-INARSA.

In March, Coca Cola FEMSA conducted a process of internal restructuring that resulted in the growth of 54-60 sales routes and the indefinite hiring of 22 others and creating a new production line that will generate 20 new permanent positions.

Combatting outsourcing

Noé Morales acknowledged the great efforts made by the two negotiating committees.

"It is a good moment. We are improving the economic conditions of workers, while we grow in membership and strongly counter the phenomenon of outsourcing, "Morales said.

"We must recognize that during the negotiations the company has maintained a dialogue and open attitude," added the manager of the SUT-INARSA.

In the past two years the union succeeded in securing direct contracts for 40 previously outsourced workers. There are still 120 workers without a permanent position in the company.

"We are on the good way. I thank the IUF Latin America region and FELATRAC for always watching us, "Morales concluded.

FEMSA in figures- Leader in Nicaragua

Coca Cola FEMSA is the largest public bottler of Coca Cola worldwide. It has 44 bottling facilities in Latin America and 19 in the Philippines, generating over 262,000 direct jobs, serving more than 357 million consumers in 12 countries in Latin America and Southeast Asia.

Each year FEMSA distributes more than 3.4 billion unit cases and has more than 100 different beverage brands.

In 2015, the Mexican transnational recorded a net profit of 562 million and a gross profit of 8,367 million, 3.4 percent more than the previous year.

In Nicaragua, FEMSA controls 65 percent of the domestic beverage market.

Read the original Spanish story here.