At PepsiCo, billions for shareholders, no rights for workers

Transnational food and drink maker PepsiCo has just found 8.7 billion US dollars to boost dividends and buy back more of its own shares. While investors snack on this bonanza, a group of courageous Indian workers at warehouses contracted by the company continue their struggle for their rights.

Furthermore PepsiCo’s “productivity plan”, first announced in 2012, will be extended another five years, from 2015 through 2019. The plan which will be used to help boost dividends will result in cost savings of $1 billion a year,  with about 40 percent coming from labor cuts.

The plan will focus investment in manufacturing automation but at the same time close some manufacturing facilities, restructure the distribution network in developed markets and share more back-office services. No doubt that all these plans will ultimately hit the workforce and worsen the working conditions although the company announced that it will provide “transition support” to affected employees through job training assistance.

PepsiCo had 278,000 employees in fiscal 2012, down from 297,000 a year earlier.

We would like to urge affiliates organised in PepsiCo and Frito-Lay operations to inform us of any changes or effects on the employment or unions’ positions caused by this so called “productivity plan” which plans to slash more jobs. Please send the relevant information to [email protected].