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Final Statement on Specific Instance Between Intl. Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco & Allied Workers' Associations (IUF) and PepsiCo in India

Author: U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises, Published on: 15 April 2016

In November 2015, PepsiCo...[asked] the USNCP...if mediation would still be available. The USNCP agreed to mediate... The parties entered into three days of mediation under the USNCP and facilitated by the Federal Mediation and Conciliation Service (FMCS) in February, 2016. Although they were not able to reach a mediated agreement, the parties and the USNCP found the dialogue and mediation process to be productive and useful. The USNCP believes that the process did lead to greater understanding of the Guidelines and will result in a quicker recognition of and easier solution of such issues when they arise in the future...

In its submission, the IUF specifically alleged that:

  • Between January 5 and April 30, 2013, 162 out of the 170 workers employed at three West Bengal warehouses exclusively contracted by PepsiCo [and operated by Radhakrishna Food Land Pvt. Ltd.] were dismissed or compelled to resign solely as a consequence of exercising their right to join a union...
  • Union members at the warehouses were the subject of harassment, threats and intimidation at the hands of “thugs” brought in by management [and other actions by the warehouse management & staff violating workers' rights]...

PepsiCo did not...[discuss] the specific allegations...:

  • First, PepsiCo argued that...[it] had gone to great lengths to investigate the allegations. PepsiCo reported that the company had received satisfactory answers to its inquiries of RKFL regarding all of the allegations...
  • Second, PepsiCo emphasized that the Specific Instance focused on the alleged actions of its contractor, and not actions by PepsiCo or its subsidiary

Read the full post here

Related companies: PepsiCo