Coke Union in Guatemala Reaches Agreement
After a nearly two-year struggle, the historic Guatemalan Coca-Cola union reached an agreement in December 2002 with the Coca-Cola bottler, PANAMCO, that met many of the union's objectives. The union, STECSA, won wage increases of 3% (retroactive) for 2001, 4% for 2002 (retroactive), 5% for 2003, and 6% for 2004. The union also retained full paid union leave for seven elected executive committee members, a benefit which PANAMCO had sought to drastically scale back. The union agreed to a small reduction of jobs through attrition and to steps to increase efficiency. The collective bargaining agreement, which was signed December 19, 2002, was reached with the assistance of the International Union of Foodworkers (IUF), to which STECSA is affiliated. STECSA sent a message thanking its international supporters, including USLEAP. (Shortly after the agreement was signed, another Coca-Cola bottler, FEMSA, bought PANAMCO but FEMSA assured the IUF and STECSA that the new collective bargaining agreement would be honored.)
Historic Coca-Cola Campaign in Guatemala:
One of the most famous international labor solidarity campaigns focused on Coca Cola in Guatemala in the 1980s when U.S. and European groups pressured Coca-Cola to take responsibility for ending violence against trade union leaders at a bottling plant. Several of the union's executive committee members were murdered during a violent labor conflict that included an occupation of the factory. The violence ended and the labor conflict was settled when Coca-Cola finally brought in a new franchise operator who then negotiated a settlement with the union.
