Coke Fights Unions in Russia

Posted to the IUF website 26-Nov-2001

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Since the Cold War ended, Coca-Cola has made large-scale investments in Russia in a successful challenge to Pepsi, which had been associated with the old regime.

However Coca-Cola brought with it a fierce resistance to union organization. Its local managers have fired union militants and intimidated union supporters into resigning their union memberships.

On August 31, 2001 the administration of the Coca-Cola Bottlers Eurasia plant in Moscow fired the chairperson of the local trade union, Viktor Grachyov, immediately after he officially informed the administration of the union's existence. It is a flagrant violation of the Russian legislation, because elected trade union officials are secured by the law. In August the union was registered as a local organization under umbrella of Moscow City Committee of the RCCCWU.

Fired union leader Viktor Grachyov is not permitted to enter the enterprise. On 25 October the Moscow labor inspectorate ordered that his firing was illegal and that he be reinstated to work. However as of this date the administration has not complied with the order, while engaging in an intimidation campaign designed to reveal other members of the union.

The union�s main demands are:
- to introduce internal regulations and clear job descriptions at the plant;
- to improve working conditions at least up to the level of the Russian Labour Code,
- to replace temporary contracts by permanent employment (workers work with temporary contracts for many years),
- to pay wages without delays,
- to pay for overtime work,
- to supply all workers with protective clothes, shoes and glasses,
- to continue paying workers during breaks due to machinery breakdown.

In June 1999 a group of workers at the Coca-Cola Bottlers Eurasia plant in Ekaterinburg formed a union that was officially registered by the Regional Committee of the Russian Commerce and Catering Worker�s Union (RCCWU). Plant management tried to intimidate union members who were threatened with dismissals. The elected shop steward was barred from the workplace. On November 12, 1999 the Office of Public Prosecutor conducted an inspection on a complaint made by the Regional Committee of RCCWU concerning violations of labour legislation by the local Coca-Cola management. As the Prosecutor�s inspection confirmed, the plant management put pressure upon the workers to force them to leave the union. As a result, all union members were compelled to sign letters resigning from the union.

In September 2001 the Regional Department of the State Labour Inspectorate visited the Ekaterinburg plant again. The inspection revealed an abusive practice of forcing workers to sign special �contractual agreements� that do not allow deductions for medical insurance and pension funds and do not provide annual vacations even for fill-time workers. The Inspectorate pointed out that a union would prevent such abusive practices.