IUF release investor update accusing PepsiCo of anti-union activity in Guatemala, India & Pakistan

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IUF's update encourages investors "to take a closer look at PepsiCo’s human rights performance in the light of a growing number of conflicts stemming from violations of fundamental rights at the company’s own operations and suppliers. PepsiCo claims to be dedicated to respecting human rights standards but consistently violates the right of workers to form trade unions and to bargain collectively – a basic human right" .

We invited PepsiCo to respond to the allegations.  It says "PepsiCo is aware of IUF’s allegations of human rights violations, and continues to maintain the position that we have acted properly in each instance." 

You can access the full details of IUF's allegations and PepsiCo's response below.

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Item
8 December 2016

PespsiCo's response to IUF's rejoinder

"PepsiCo and IUF clearly disagree in their views of events occurring in India, Pakistan, and Guatemala.  PepsiCo is disappointed in IUF’s inflexibility to find resolution in India and its approach to publicly attack PepsiCo over their claims in Pakistan and Guatemala, rather than seeking dialogue on those issues. PepsiCo remains committed to respecting the human rights of all workers throughout its value chain.  As we are made aware of issues, we will investigate complaints of violations and take action to address noncompliances."

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NGO rejoinder
29 November 2016

IUF rejoinder to PepsiCo: The current situation re RKFL/West Bengal, India

Author: IUF - Intl. Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations

Concerning West Bengal, PepsiCo have now stated publicly that the company has “agreed to meet with the 28 workers in coordination with IUF. PepsiCo has further agreed that we will not place any conditions on our meeting with the 28 workers, and that we will include their input in our overall assessment of the 2013 events. We will continue to uphold our commitments under the U.N. Guiding Principles and OECD Guidelines, including exercising our leverage and evaluating our ongoing relationship with RKFL.” The IUF can confirm that we are currently discussing the various arrangements necessary to facilitate the interview process. This is progress, however belated, and we welcome it. PepsiCo further states that the company “will continue to uphold our commitments under the U.N. Guiding Principles and OECD Guidelines, including exercising our leverage and evaluating our ongoing relationship with RKFL.” For this, it is necessary that PepsiCo base any actions it might take on the actual facts and not the version presented in their published response...

 

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Company response
8 November 2016

PepsiCo's response

Author: PepsiCo

PepsiCo takes seriously all allegations of human rights violations, whether alleged to have occurred in our own operations or those of our third party business partners.  We have a robust Human Rights Program, the foundation of which is our Human Rights Policy, our Supplier Code of Conduct, and our Sustainable Sourcing Program.  Our programs and our response to allegations of human rights violations are guided by the U.N. Guiding Principles for Business and Human Rights and the OECD Guidelines for Multinational Enterprises.  PepsiCo is aware of IUF’s allegations of human rights violations, and continues to maintain the position that we have acted properly in each instance....

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Item
10 October 2016

IUF PepsiCo Investor Update: A disturbing pattern of human rights violations

Author: IUF - Intl. Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations

PepsiCo claims to be dedicated to respecting human rights standards but consistently violates the right of workers to form trade unions and to bargain collectively – a basic human right. PepsiCo management at the company's Frito-Lay plant in Lahore, Pakistan has responded to the formation and official registration of a trade union with 650 members in July this year by harassing and transferring union officers and seeking to violate the union's collective bargaining rights by creating a bogus union...The attack on rights in Pakistan follows a similar pattern of rights violations in Guatemala. On April 28, 2015, workers at the PepsiCo snack foods plant in Guatemala City legally registered their union, SITRAFRITOLAY, with nearly 900 members out of the factory’s 1300 workers. In June 2015, the company violated their collective bargaining rights by signing a 3-year collective agreement with a small management-supported organization. Management and the company union offer workers financial inducements to sign off on their membership in SITRAFRITOLAY...In West Bengal, PepsiCo’s refusal to recognize and to remedy ongoing human rights violations at their warehouse supplier makes the company complicit in human rights abuses.

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