Colombia

With Luis Alejandro Pedraza

New Agreement at Coca-Cola Urabá

When the Struggle Pays Off

Over the last two years, IUF has conducted several international campaigns in support of the struggle of SICO’s Carepa division, which represents Coca-Cola workers in the Urabá banana production region. The negotiations for the new Collective Bargaining Agreement began early this year. It was a conflict-ridden process, which the unity of the labor organization and the international solidarity it received were able to overcome, achieving benefits never before attained. Luis Alejandro Pedraza, President of SICO and the Agro-Food and Livestock Production Association (UNAC), spoke with Sirel and described in detail the bargaining process and its outcome. 

 

-How long did the negotiations take?

-Colombia’s legislation stipulates three stages for collective bargaining. The direct resolution stage, which can take up to 20 calendar days, which can be extended for another 20 days with the agreement of the parties. Then comes the pre-strike stage, ten days long, in which negotiations can continue, and finally there is the strike, for which 60 days are provided, and during which time negotiations can also take place. In our case, the first 20 days were exhausted and there was an agreement to extend negotiations for another 20 days. Thus the signing of the Agreement demanded a total of 40 days.

 

-What is your evaluation of the bargaining process?

-It was an interesting process, where two opposing views were debated. The view of the Bebidas y Alimentos de Urabá company, which promotes outsourcing and the flexibilization of the Collective Agreement, and coincides with FEMSA’s and the Coca-Cola Company’s position; and the view held by UNAC, SICO and IUF, which entails securing labor stability for all workers through Collective Agreements, thus strengthening trade unions.

In that sense, the role played by IUF in its negotiations with Coca-Cola was key, because under isolated conditions, without being part of an international structure, this union would’ve disappeared already.

 

-What were the toughest points in the bargaining process?

-The articles concerning union guarantees and job stability. The company denounced these articles to the Ministry of Labor, and in its counterproposal to the set of demands presented by the union, it insisted that these articles be eliminated from the Agreement with the aim of furthering its outsourcing policy. For that reason, the negotiations focused primarily on these issues. When the company backed down in its attempt to eliminate the basic guarantees that protect union activities, the bargaining process became easier.

 

-Coca-Cola Urabá has been pushing to introduce these changes since the last negotiation, and management has maintained a permanent confrontational attitude towards the Union over these articles.

-This is due to the company’s being influenced by the position that Coca-Cola is implementing in our country and in much of the region. That’s why it uses the same arguments, and why it has that attitude that you point out.

 

-Besides preserving these clauses, the bargaining was very successful in economic aspects.

-No doubt about it. We were able to break the limit set by the labor market, where the policy is to go by the Consumer Price Index –which in Colombia stands at 4 to 7%–, and, based on that, might allow one or two additional percentage points. Most collective bargaining agreements in the beverage sector have obtained a wage increase of around 6.5 or 7%, maximum. We achieved an increase of 12%. There was a significant improvement in social issues. In Urabá, health care services are in chaos. For many surgeries and treatments for certain illnesses, patients must travel to Medellín, which is 14 hours away by car. It was established that if any workers or their family members must receive care in Medellín, the company will pay for their air travel expenses, plus eight days of per diem for whoever accompanies them. This solves a serious problem faced by workers.

Another important aspect worthy of highlighting in the Agreement is that if management were to decide to sell the company, the workers would maintain the Collective Agreement and the union’s position would continue to be recognized. This formula is part of the Agreement that IUF signed with Chiquita Brands, which in Colombia enabled the protection of some 2,600 jobs and an equal number of members of SINTRAINAGRO, when the transnational pulled out of the Urabá area. In our case, if the company is acquired by, for example, FEMSA, the latter would have to recognize the Union and the Collective Bargaining Agreement.

 

-In a country where collective bargaining agreements are an endangered species, how is it that SICO secured such achievements?

-One of the greatest concerns in IUF and in trade unions is the problems introduced by the processes of outsourcing, and that is what we are working on. The company attacked labor stability and union autonomy, and after being defeated in those two issues, it was in a weak position when it came time to bargain the economic part of the agreement.

Nonetheless, this is the result of efforts that go back four years, when we began consolidating the union. Last year, under a project that IUF is implementing with the LO-TCO (Labor center of Sweden), we held several Study Circles and a seminar on collective bargaining, so that the Executive Committee would be prepared to take on the bargaining process. Through these activities, we were also able to raise awareness among the vast majority of the workers, so that they would back the struggle to defend the Agreement. These efforts enabled the Executive Committee and rank-and-file members to have a clear idea of what was at stake, especially considering that the company had unilaterally imposed outsourcing schemes in violation of the Collective Agreement. Faced with the threat of outsourcing -and with the example they had of two Union leaders whose contracts were terminated, but whom we were later able to reinstate-, workers were on the alert and willing to join together to defend the Collective Agreement.

 

-Another contributing element was the solidarity of the Union of Agroindustry Workers (SINTRAINAGRO).

-SINTRAINAGRO’s involvement played a role in geopolitical terms. Banana workers account for 70% of the region’s beverage consumers, and every agricultural establishment has a soft drink distributing center. A strategic alliance between SICO and SINTRAINAGRO to block consumption would strike a serious blow to Coca-Cola’s finances.

 

-What you say is confirmed by the fact that after a 15-day banana workers’ strike in 2005, in the framework of negotiations for their Collective Bargaining Agreement, it took Coca-Cola four months to regain their average sales level.

-When we signed our Collective Agreement, the bargaining process between SINTRAINAGRO and the banana workers’ union was starting, and the company’s management hoped for a successful outcome because, as you point out, during the last strike sales had dropped 70 percent.

 

-What’s your evaluation of IUF’s support?

-It was decisive! The bargaining process was backed by support that came greatly in advance. Because, under the meetings held with the Coca-Cola Company towards the signing of an agreement with IUF, the problems affecting SICO in Urabá were present in every agenda. IUF’s General and Regional Secretariats expressed at all times their concern and their unbending intention to support their affiliated organization. This attitude strengthened the bargaining process, and it proved decisive. And I repeat, without that support, the Union would have perished long ago.

 

-Lastly, in light of all the benefits wrestled from the company, will SICO in Carepa, Urabá, continue to be accused of being a social club sold out to Coca-Cola?

-This has been a victory of IUF as a whole. And the new Collective Agreement is a political response to those who claim that the labor strategies of our International Federation are mistaken.

I don’t know what debate will be opened with this Collective Agreement. I don’t know what those who have accused SICO of being a union playing to the interests of management are going to say now. We’ve achieved this Collective Agreement because we have always taken a clear and determined stand to defend the interests of workers, and because our struggle is backed by widespread solidarity in Colombia and the world through IUF.

 

From Bogotá, Gerardo Iglesias

© Rel-UITA

April 10, 2006

 

 

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