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In stark 
contrast to its “Choose 
Wellness, Choose Nestlé” 
slogan boldly displayed in 
its web portal, Nestlé 
recently broke off direct 
dealings with the National 
Sole Union of Workers of 
Nestlé Peru S.A. (SUNTRANEP), 
refusing, among other 
things, to grant any wage 
increase during the whole of 
2010, and attempting to take 
away social benefits already 
gained by workers. 
  
Alexander Caballero, 
general secretary of the 
National Sole Union of 
Workers of Nestlé Peru S.A. 
(SUNTRANEP), notes that
Nestlé 
has hindered negotiations 
from the start by taking 38 
days to respond to the 
union’s list of demands, 
when article 57 of the Labor 
Collective Relations Act 
stipulates that negotiations 
must begin within 10 days of 
presentation of a list of 
demands. 
  
“We had submitted the list 
of demands on Nov. 30, 2009, 
and management returned it 
on Jan. 6. We reported this 
to the Ministry of Labor, 
and it ordered the company 
to immediately resume 
discussion of the list of 
demands,” 
Caballero
said. 
  
SUNTRANEP’s 
demands include a wage 
increase, the implementation 
of a dependency allowance 
and the leveling of workers’ 
wages, as Caballero notes, 
“there are significant wage 
differences between workers 
hired in 2000 by 
Nestlé 
and those hired in 2001, in 
2007, or in 2009.” 
  
“Many workers with the same 
number of years in the 
company and performing the 
same tasks in the same 
category but are placed in 
different wage levels,” he 
explained. 
  
The company is asking the 
union to sign a Bargaining 
Agreement with a three-year 
term and zero wage increase 
for the year 2010, 
“offering a one-time-only 
‘bonus’ of less than 250 
dollars for this year, 
and monthly wage increases 
of 25 dollars, in average, 
for 2011 and 2012,” he 
added. 
  
According to 
Caballero, 
the company also seeks to 
eliminate sports activities 
(clause 37), which are 
usually held in the month of 
March with the participation 
mostly of “our members, but 
with non-members invited to 
participate as well. It also 
wants to take away school 
prizes, which are a benefit 
that applies even to 
high-ranking officers of the 
company,” he said. 
  
On March 31, the members of 
the Bargaining Committee 
representing the workers 
were convened by management 
to a new meeting to discuss 
the list of demands. At that 
meeting the workers 
presented two proposals, to 
which 
Nestlé 
merely responded by 
suspending direct dealings,”
 
Caballero 
said. 
  
Among the reasons given by 
the transnational 
corporation to deny a wage 
increase for the current 
year is the fact that 
inflation last year was 0.25 
percent. 
  
What management forgot to 
take into consideration in 
the negotiation is that
in 2009 Nestlé, the world’s 
largest food group, reported 
a net profit of 10.4 billion 
CHF (some 10 billion US 
dollars) 
exceeding forecasts, with a 
4.1 percent rise in 
underlying sales for last 
year, ahead of rivals 
Unilever 
and 
Danone. 
  
For 2010, 
Nestlé 
projects greater growth in 
its core food and beverage 
business, as it is focusing 
on these products, following 
its sale of the Alcon 
ophthalmology business. 
  
  
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