Five Teamsters unions in the US have filed charges of unfair labour practices charges against PepsiCo, claiming it the food and drinks giant has “anti-worker policies” in place.
The unions located in the states of Illinois, Indiana, and Iowa have filed complaints with the country’s National Labour Relations Board.
Go deeper with GlobalData
They claim PepsiCo has “unlawful work rules” that prohibit workers from discussing wages and hours.
The unions also said the Pepsi Max and Lay’s snacks owner is preventing and discouraging workers from forming and joining labour organisations.
“While Pepsi should be at the bargaining table to reach an agreement that rewards the hardworking Teamsters who keep operations moving, the company is subjecting our members to antiquated and illegal work rules that violate their basic rights,” Jeff Padellaro, the director of the Teamsters brewery, bakery, and soft drink conference, said.
“Teamsters are putting Pepsi on notice that we won’t tolerate union busting. We will take coordinated action against the company until it gets serious in negotiations.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUnion officials representing PepsiCo workers are in negotiations over new contracts for staff in Illinois and Indiana.
Teamsters local 135 president Dustin Roach said: “This is the largest food and beverage company in North America and it’s time they start acting more responsibly and respectfully. Pepsi needs to address workers’ issues at the bargaining table. If they don’t, we will hit the streets.”
In a statement to Just Drinks, PepsiCo said it “has and will continue” to follow US labour laws, insisting it has not carried out any unfair labour practices.
“We have been negotiating in good faith with Teamsters across Illinois and Indiana to reach mutually agreeable collective bargaining agreements. We are proud of the strong offers we are presenting to the Unions and hope we can quickly reach final agreements. PepsiCo Beverages North America remains fully committed to continuing to serve our local customers and consumers who depend on us,” a spokesperson for PepsiCo said.
In February, PepsiCo CEO Ramon Laguarta said the US had seen a “slowdown” in the market after the group saw volumes slide in its beverages business.
As a result, PepsiCo lowered its full-year guidance for organic revenue growth of at least 4% and core constant-currency earnings per share growth of at least 8%. The company previously forecast organic revenue growth at the high end of 4% to 6% and core constant-currency earnings per share growth in the high single digits.
For its full fiscal 2023, PepsiCo posted net sales of $91.5bn, delivering 9.5% organic growth. For the fourth quarter, total revenue reached $27.85bn, down marginally from $28bn the previous year.
PepsiCo reported fourth-quarter operating profit of $1.68bn, up from $815m a year earlier. Full-year operating profit reached $11.99bn, up from $11.51bn in 2022.
The company is scheduled to report the financial results for its 2024 fiscal first quarter tomorrow (23 April).
