Business Today

business-today-logo
SUBSCRIPTION
ADVERTISE
Menu
  • Home
  • Issues
    • 1996 to 1999
      • 1996
        • May 1996
        • June 1996
        • July 1996
        • August 1996
        • September 1996
        • October 1996
        • November 1996
        • December 1996
      • 1997
        • January 1997
        • FEBRUARY 1997
        • March 1997
        • April 1997
        • May 1997
        • June 1997
        • July 1997
        • August 1997
        • September 1997
        • October 1997
        • November 1997
        • December 1997
    • 2000 to 2009
      • 2006
        • January 2006
        • February 2006
        • March 2006
        • April 2006
        • May 2006
        • June 2006
        • July 2006
        • August 2006
        • September 2006
        • October 2006
        • November 2006
        • December 2006
      • 2007
        • January 2007
        • February 2007
        • March 2007
        • April 2007
        • May 2007
        • July 2007
        • June 2007
        • August 2007
        • September 2007
        • October 2007
        • November 2007
        • December 2007
      • 2008
        • January 2008
        • February 2008
        • March 2008
        • May 2008
        • April 2008
        • June 2008
        • July 2008
        • August 2008
        • September 2008
        • November 2008
        • October 2008
        • December 2008
      • 2009
        • January 2009
        • February 2009
        • March 2009
        • April 2009
        • May 2009
        • June 2009
        • July 2009
        • August 2009
        • September 2009
        • October 2009
        • November 2009
        • December 2009
    • 2010 to 2019
      • 2010
        • January 2010
        • February 2010
        • March 2010
        • April 2010
        • May 2010
        • June 2010
        • July 2010
        • August 2010
        • September 2010
        • October 2010
        • November 2010
        • December 2010
      • 2011
        • January 2011
        • February 2011
        • March 2011
        • April 2011
        • May 2011
        • June 2011
        • July 2011
        • August 2011
        • September 2011
        • October 2011
        • November 2011
        • December 2011
      • 2012
        • January 2012
        • February 2012
        • March 2012
        • April 2012
        • May 2012
        • June 2012
        • July 2012
        • August 2012
        • September 2012
        • October 2012
        • November 2012
        • December 2012
      • 2013
        • January 2013
        • February 2013
        • March 2013
        • April 2013
        • May 2013
        • June 2013
        • July 2013
        • August 2013
        • September 2013
        • October 2013
        • November 2013
        • December 2013
      • 2014
        • January 2014
        • February 2014
        • March 2014
        • April 2014
        • May 2014
        • June 2014
        • July 2014
        • August 2014
        • September 2014
        • October 2014
        • November 2014
        • December 2014
      • 2015
        • January 2015
        • February 2015
        • March 2015
        • April 2015
        • May 2015
        • June 2015
        • July 2015
        • August 2015
        • September 2015
        • October 2015
        • November 2015
        • December 2015
      • 2016
        • January 2016
        • February 2016
        • March 2016
        • April 2016
        • May 2016
        • June 2016
        • July 2016
        • August 2016
        • September 2016
        • October 2016
        • November 2016
        • December 2016
      • 2017
        • January 2017
        • February 2017
        • March 2017
        • April 2017
        • May 2017
        • June 2017
        • July 2017
        • August 2017
        • September 2017
        • October 2017
        • November 2017
        • December 2017
      • 2018
        • January 2018
        • February 2018
        • March 2018
        • April 2018
        • May 2018
        • August 2018
        • June 2018
        • July 2018
        • September 2018
        • October 2018
        • November 2018
        • December 2018
      • 2019
        • January 2019
        • February 2019
        • March 2019
        • April 2019
        • May 2019
        • June 2019
        • July 2019
        • August 2019
        • September 2019
        • October 2019
        • November 2019
        • December 2019
    • 2020 to 2025
      • 2020
        • January 2020
        • February 2020
        • March 2020
        • April 2020
        • May 2020
        • June 2020
        • July 2020
        • August 2020
        • September 2020
        • October 2020
        • November 2020
        • December 2020
      • 2021
        • September 2021
        • October 2021
      • 2022
        • January 2022
        • February 2022
        • March 2022
        • April 2022
        • May 2022
        • June 2022
        • July 2022
        • August 2022
        • September 2022
        • October 2022
        • December 2022
      • 2023
        • January 2023
        • February 2023
        • March 2023
        • April 2023
        • May 2023
        • June 2023
        • July 2023
        • August 2023
        • September 2023
        • October 2023
        • November 2023
        • December 2023
      • 2024
        • January 2024
        • February 2024
        • March 2024
        • April 2024
        • May 2024
        • June 2024
        • July 2024
        • August 2024
        • September 2024
        • October 2024
        • November 2024
        • December 2024
      • 2025
        • January 2025
        • February 2025
        • March 2025
        • April 2025
        • May 2025
        • June 2025
  • About Us
  • BT Awards
    • BT Top 40
      • Business Today Top 40 2021 – 2022
    • BT Top 30
      • Business Today Top 30 2015 – 2016
      • Business Today Top 30 2016 – 2017
      • Business Today Top 30 2017 – 2018
      • Business Today Top 30 2018 – 2019
    • BT Top 25
      • Business Today Top 25 2011 – 2012
      • Business Today Top 25 2012 – 2013
      • Business Today Top 25 2013 – 2014
      • Business Today Top 25 2014 – 2015
    • BT Top 20
      • Business Today Top 20 2009 – 2010
      • Business Today Top 20 2010 – 2011
    • BT Top 10
      • Business Today Top 10 2008 – 2009
      • Business Today Top 10 2007 – 2008
      • Business Today Top 10 2006 – 2007
      • Business Today Top 10 2005 – 2006
      • Business Today Top 10 2003 – 2004
      • Business Today Top 10 2000 – 2001
      • Business Today Top 10 1999 – 2000
      • Business Today Top 10 1997 – 1998
      • Business Today Top 10 1996 – 1997
      • Business Today Top 10 1995 – 1996
  • For Digital Subscription
Facebook Instagram
business-today-logo
Menu
  • Home
  • Issues
    • 1996 to 1999
      • 1996
        • May 1996
        • June 1996
        • July 1996
        • August 1996
        • September 1996
        • October 1996
        • November 1996
        • December 1996
      • 1997
        • January 1997
        • FEBRUARY 1997
        • March 1997
        • April 1997
        • May 1997
        • June 1997
        • July 1997
        • August 1997
        • September 1997
        • October 1997
        • November 1997
        • December 1997
    • 2000 to 2009
      • 2006
        • January 2006
        • February 2006
        • March 2006
        • April 2006
        • May 2006
        • June 2006
        • July 2006
        • August 2006
        • September 2006
        • October 2006
        • November 2006
        • December 2006
      • 2007
        • January 2007
        • February 2007
        • March 2007
        • April 2007
        • May 2007
        • July 2007
        • June 2007
        • August 2007
        • September 2007
        • October 2007
        • November 2007
        • December 2007
      • 2008
        • January 2008
        • February 2008
        • March 2008
        • May 2008
        • April 2008
        • June 2008
        • July 2008
        • August 2008
        • September 2008
        • November 2008
        • October 2008
        • December 2008
      • 2009
        • January 2009
        • February 2009
        • March 2009
        • April 2009
        • May 2009
        • June 2009
        • July 2009
        • August 2009
        • September 2009
        • October 2009
        • November 2009
        • December 2009
    • 2010 to 2019
      • 2010
        • January 2010
        • February 2010
        • March 2010
        • April 2010
        • May 2010
        • June 2010
        • July 2010
        • August 2010
        • September 2010
        • October 2010
        • November 2010
        • December 2010
      • 2011
        • January 2011
        • February 2011
        • March 2011
        • April 2011
        • May 2011
        • June 2011
        • July 2011
        • August 2011
        • September 2011
        • October 2011
        • November 2011
        • December 2011
      • 2012
        • January 2012
        • February 2012
        • March 2012
        • April 2012
        • May 2012
        • June 2012
        • July 2012
        • August 2012
        • September 2012
        • October 2012
        • November 2012
        • December 2012
      • 2013
        • January 2013
        • February 2013
        • March 2013
        • April 2013
        • May 2013
        • June 2013
        • July 2013
        • August 2013
        • September 2013
        • October 2013
        • November 2013
        • December 2013
      • 2014
        • January 2014
        • February 2014
        • March 2014
        • April 2014
        • May 2014
        • June 2014
        • July 2014
        • August 2014
        • September 2014
        • October 2014
        • November 2014
        • December 2014
      • 2015
        • January 2015
        • February 2015
        • March 2015
        • April 2015
        • May 2015
        • June 2015
        • July 2015
        • August 2015
        • September 2015
        • October 2015
        • November 2015
        • December 2015
      • 2016
        • January 2016
        • February 2016
        • March 2016
        • April 2016
        • May 2016
        • June 2016
        • July 2016
        • August 2016
        • September 2016
        • October 2016
        • November 2016
        • December 2016
      • 2017
        • January 2017
        • February 2017
        • March 2017
        • April 2017
        • May 2017
        • June 2017
        • July 2017
        • August 2017
        • September 2017
        • October 2017
        • November 2017
        • December 2017
      • 2018
        • January 2018
        • February 2018
        • March 2018
        • April 2018
        • May 2018
        • August 2018
        • June 2018
        • July 2018
        • September 2018
        • October 2018
        • November 2018
        • December 2018
      • 2019
        • January 2019
        • February 2019
        • March 2019
        • April 2019
        • May 2019
        • June 2019
        • July 2019
        • August 2019
        • September 2019
        • October 2019
        • November 2019
        • December 2019
    • 2020 to 2025
      • 2020
        • January 2020
        • February 2020
        • March 2020
        • April 2020
        • May 2020
        • June 2020
        • July 2020
        • August 2020
        • September 2020
        • October 2020
        • November 2020
        • December 2020
      • 2021
        • September 2021
        • October 2021
      • 2022
        • January 2022
        • February 2022
        • March 2022
        • April 2022
        • May 2022
        • June 2022
        • July 2022
        • August 2022
        • September 2022
        • October 2022
        • December 2022
      • 2023
        • January 2023
        • February 2023
        • March 2023
        • April 2023
        • May 2023
        • June 2023
        • July 2023
        • August 2023
        • September 2023
        • October 2023
        • November 2023
        • December 2023
      • 2024
        • January 2024
        • February 2024
        • March 2024
        • April 2024
        • May 2024
        • June 2024
        • July 2024
        • August 2024
        • September 2024
        • October 2024
        • November 2024
        • December 2024
      • 2025
        • January 2025
        • February 2025
        • March 2025
        • April 2025
        • May 2025
        • June 2025
  • About Us
  • BT Awards
    • BT Top 40
      • Business Today Top 40 2021 – 2022
    • BT Top 30
      • Business Today Top 30 2015 – 2016
      • Business Today Top 30 2016 – 2017
      • Business Today Top 30 2017 – 2018
      • Business Today Top 30 2018 – 2019
    • BT Top 25
      • Business Today Top 25 2011 – 2012
      • Business Today Top 25 2012 – 2013
      • Business Today Top 25 2013 – 2014
      • Business Today Top 25 2014 – 2015
    • BT Top 20
      • Business Today Top 20 2009 – 2010
      • Business Today Top 20 2010 – 2011
    • BT Top 10
      • Business Today Top 10 2008 – 2009
      • Business Today Top 10 2007 – 2008
      • Business Today Top 10 2006 – 2007
      • Business Today Top 10 2005 – 2006
      • Business Today Top 10 2003 – 2004
      • Business Today Top 10 2000 – 2001
      • Business Today Top 10 1999 – 2000
      • Business Today Top 10 1997 – 1998
      • Business Today Top 10 1996 – 1997
      • Business Today Top 10 1995 – 1996
  • For Digital Subscription
business-today-logo
Menu
  • Home
  • Issues
    • 1996 to 1999
      • 1996
        • May 1996
        • June 1996
        • July 1996
        • August 1996
        • September 1996
        • October 1996
        • November 1996
        • December 1996
      • 1997
        • January 1997
        • FEBRUARY 1997
        • March 1997
        • April 1997
        • May 1997
        • June 1997
        • July 1997
        • August 1997
        • September 1997
        • October 1997
        • November 1997
        • December 1997
    • 2000 to 2009
      • 2006
        • January 2006
        • February 2006
        • March 2006
        • April 2006
        • May 2006
        • June 2006
        • July 2006
        • August 2006
        • September 2006
        • October 2006
        • November 2006
        • December 2006
      • 2007
        • January 2007
        • February 2007
        • March 2007
        • April 2007
        • May 2007
        • July 2007
        • June 2007
        • August 2007
        • September 2007
        • October 2007
        • November 2007
        • December 2007
      • 2008
        • January 2008
        • February 2008
        • March 2008
        • May 2008
        • April 2008
        • June 2008
        • July 2008
        • August 2008
        • September 2008
        • November 2008
        • October 2008
        • December 2008
      • 2009
        • January 2009
        • February 2009
        • March 2009
        • April 2009
        • May 2009
        • June 2009
        • July 2009
        • August 2009
        • September 2009
        • October 2009
        • November 2009
        • December 2009
    • 2010 to 2019
      • 2010
        • January 2010
        • February 2010
        • March 2010
        • April 2010
        • May 2010
        • June 2010
        • July 2010
        • August 2010
        • September 2010
        • October 2010
        • November 2010
        • December 2010
      • 2011
        • January 2011
        • February 2011
        • March 2011
        • April 2011
        • May 2011
        • June 2011
        • July 2011
        • August 2011
        • September 2011
        • October 2011
        • November 2011
        • December 2011
      • 2012
        • January 2012
        • February 2012
        • March 2012
        • April 2012
        • May 2012
        • June 2012
        • July 2012
        • August 2012
        • September 2012
        • October 2012
        • November 2012
        • December 2012
      • 2013
        • January 2013
        • February 2013
        • March 2013
        • April 2013
        • May 2013
        • June 2013
        • July 2013
        • August 2013
        • September 2013
        • October 2013
        • November 2013
        • December 2013
      • 2014
        • January 2014
        • February 2014
        • March 2014
        • April 2014
        • May 2014
        • June 2014
        • July 2014
        • August 2014
        • September 2014
        • October 2014
        • November 2014
        • December 2014
      • 2015
        • January 2015
        • February 2015
        • March 2015
        • April 2015
        • May 2015
        • June 2015
        • July 2015
        • August 2015
        • September 2015
        • October 2015
        • November 2015
        • December 2015
      • 2016
        • January 2016
        • February 2016
        • March 2016
        • April 2016
        • May 2016
        • June 2016
        • July 2016
        • August 2016
        • September 2016
        • October 2016
        • November 2016
        • December 2016
      • 2017
        • January 2017
        • February 2017
        • March 2017
        • April 2017
        • May 2017
        • June 2017
        • July 2017
        • August 2017
        • September 2017
        • October 2017
        • November 2017
        • December 2017
      • 2018
        • January 2018
        • February 2018
        • March 2018
        • April 2018
        • May 2018
        • August 2018
        • June 2018
        • July 2018
        • September 2018
        • October 2018
        • November 2018
        • December 2018
      • 2019
        • January 2019
        • February 2019
        • March 2019
        • April 2019
        • May 2019
        • June 2019
        • July 2019
        • August 2019
        • September 2019
        • October 2019
        • November 2019
        • December 2019
    • 2020 to 2025
      • 2020
        • January 2020
        • February 2020
        • March 2020
        • April 2020
        • May 2020
        • June 2020
        • July 2020
        • August 2020
        • September 2020
        • October 2020
        • November 2020
        • December 2020
      • 2021
        • September 2021
        • October 2021
      • 2022
        • January 2022
        • February 2022
        • March 2022
        • April 2022
        • May 2022
        • June 2022
        • July 2022
        • August 2022
        • September 2022
        • October 2022
        • December 2022
      • 2023
        • January 2023
        • February 2023
        • March 2023
        • April 2023
        • May 2023
        • June 2023
        • July 2023
        • August 2023
        • September 2023
        • October 2023
        • November 2023
        • December 2023
      • 2024
        • January 2024
        • February 2024
        • March 2024
        • April 2024
        • May 2024
        • June 2024
        • July 2024
        • August 2024
        • September 2024
        • October 2024
        • November 2024
        • December 2024
      • 2025
        • January 2025
        • February 2025
        • March 2025
        • April 2025
        • May 2025
        • June 2025
  • About Us
  • BT Awards
    • BT Top 40
      • Business Today Top 40 2021 – 2022
    • BT Top 30
      • Business Today Top 30 2015 – 2016
      • Business Today Top 30 2016 – 2017
      • Business Today Top 30 2017 – 2018
      • Business Today Top 30 2018 – 2019
    • BT Top 25
      • Business Today Top 25 2011 – 2012
      • Business Today Top 25 2012 – 2013
      • Business Today Top 25 2013 – 2014
      • Business Today Top 25 2014 – 2015
    • BT Top 20
      • Business Today Top 20 2009 – 2010
      • Business Today Top 20 2010 – 2011
    • BT Top 10
      • Business Today Top 10 2008 – 2009
      • Business Today Top 10 2007 – 2008
      • Business Today Top 10 2006 – 2007
      • Business Today Top 10 2005 – 2006
      • Business Today Top 10 2003 – 2004
      • Business Today Top 10 2000 – 2001
      • Business Today Top 10 1999 – 2000
      • Business Today Top 10 1997 – 1998
      • Business Today Top 10 1996 – 1997
      • Business Today Top 10 1995 – 1996
  • For Digital Subscription

Coke Cornered?

by
Reading Time: 9 mins read
0
Share on Twitter
image_pdfDownload as PDF

On January 21st employees and representatives of the management of Pure Beverages, Trade Union leaders and the Labour Commissioner met in a renewed effort to resolve the long standing crisis at Pure Beverages (PB) company limited. The meeting concluded with the Labour Commissioner requesting the management of PB to submit certain proposals in an effort to resolve the worsening issue. The issue at stake is the continuing strike at PB which commenced on December 12th and remains unresolved up-to-date. The Trade Union action by 861 employees at PB erupted with the closure of PB’s factory at Kaduwela on November 26, 1996. Discussions on the issue and related matters have gone on for over 7 months, however, nothing has been resolved and the severity of the issue is evident in the major shortage of PB products in the country.

PB have been the bottlers for Coca Cola (CC) since 1966, under a franchise agreement with Coca Cola Export Corporation. The Company’s Headquarters is in Colombo, with two bottling plants in Kaduwela and Biyagama. In April 1961. Coca Cola was launched in Sri Lanka and in 1980 a new plant was opened in Kaduwela. In 1982.

Fanta Orange was launched in the country while Sprite was launched in 1984. In October 1988, the third bottling plant in Biyagama was commissioned. In September 1994, F & N Coca Cola Pvt Ltd., of Singapore, acquired 30 % equity of the company, pursuant to a deal made with the major shareholders of the company, with the right to appoint majority of the directors and to exercise certain management rights. F & N Coca Cola in- creased its equity in the company to 50.21%, by a direct offer made to all shareholders of the company. At present. F & N holds 82.71% of PB. According to the company’s Annual Report for 95/ 96. PB showed a loss of 8% for the year while turnover increased marginally to 1.3 billion rupees. In his review, the Chairman, WDM Fernando says, “the success of our business can be best illustrated by a simple statistic. It took 25 years before we increased production: capacity, by investing in a second bottling plant in Kaduwela. Since then, we have increased production capacity through investments in new bottling lines on an average of every five years. We have also changed from an independent bottler of CC to become a part of the global CC system through the acquisition of 82.74% of our shareholding by F & N Coca Cola Pvt.Ltd, the Singapore-based anchor bottler for CC. We are therefore well poised to meet the challenges of the future”. This report has no indication of either of the plants being over staffed nor any mention of the closure of the Kaduwela Plant. The first mention of a necessity to retrench the staff of PB was made on June 26, 1996 in a letter by the Employers Federation of Ceylon (EFC) (of whom PB is a member). The letter stated that the Management had decided to introduce a Voluntary Retirement scheme (VRS) in view of studies undertaken by PB, which have revealed that their plants are heavily overstaffed when compared to other plants in the entire Asian region. The letter was addressed to the General Secretary of Ceylon Mercantile Industrial and General Workers’ Union (CMU), which has the largest representation of PB workers. The CMU sent a reply two days later, calling for a clarification on two main matters. Firstly, what are the exact facts that reveal the local plants are heavily overstaffed compared to other plants in the region, and secondly what are the reduction levels that the company has in mind. The CMU however did not receive a reply to its letter Almost 6 weeks later the company arranged for a discussion with the CMU, through the EFC.

on August 14, 1996 at which the new GM, Frank Kendrick, appointed by F & N Coca Cola was present. According to a report by the General Secretary of the CMU. Bala Thampoe, Kendrick stated at the meeting that the studies said to have been carried out by PB had in fact been carried out by a team from the Atlanta Head Office of CC. No comparisons relating to other plants in Asia were put for- ward, however, the team had found from a study of the operations at Biyagama that unsatisfactory work practices called for reduction in the manning levels at the plant. The issue was to be dealt with by the CMU and the management of PB. These facts were endorsed in a letter sent by the EFC dated September 2, to the Gen. Sec. CMU, in which the problem at Biyagama was discussed. However, no mention of the Kaduwela factory was made. Thampoe’s report goes further to say that a discussion took place between the representatives of the CMU and Management of Biyagama on September 25, 1996. The Management representatives are reported to have acknowledged that the manning levels recorded by the Adanta team would not be sufficient to maintain continuous production at Biyagama. No further discussions took place between the Management and the employees till Octber 29th when, according to Thampoe, the decision to retrench 350 employees and to close down the Kaduwela factory was  announced. The decision was conveyed to the CMU by a letter dated October 30, 1996, from the ERC The closure of the Kaduwela Plant. according to the letter, was being examined for some time, for three main reasons, namely:

1. Inadequate water supply at the plant

2. Environmental concerns regarding discharge of effluents and

3. High operation cost.

The decision on the closure without further delay was because of continuous massive losses and the poor response to the VRS scheme. This was the climax of the issue, and communication hence- forth centered only around one issue the initiation of strike action. The CMU in a letter sent the very same day, protested against the closure of the Kaduwela Factory and called for a reason for the sudden closure of the plant. Discussions followed on November 14, 1996 between the trade union officials and the Management when it was decided to extend the closure of the Kaduwela Factory to November 20, 1996. The CMU then replied protesting against the closure and inform the company of the temporary closure of the Biyagama Factory in order to permit workers to conduct a meeting to discuss the issue. This letter was followed by another letter warning of possible strike, action on December 12th if the Kaduwela Factory is not reopened. The communication between the two parties after this letter was as follows. On December15, 1996: PB wrote to the CMU saying they had applied to the Labour Commissioner to conduct an inquiry into the application to terminate the services of 350 employees. On December 9, 1996: PB wrote to CMU regretting trade union action and call for the matter to be dealt with by the relevant authorities. On December 12, 1996 CMU wrote to PB announcing trade union action.

 Thus on December 12th, 508 trade union workers and another 60 members of another trade union known as “the Food Beverages and Tobacco Industry Employees Union (FBTIU), went on strike in opposition to the closure of the Kaduwela Factory. The company reacted by writing to 293 employees of the CMU and FBTIU who laid out work at Kaduwela, requesting them to report to work at Biyagama from December 17th. This provoked the Union to call on all employees to join the strike The total number of workers currently on strike is 861. The matter has caused much concern amongst Labour Officials, International Unions and Business Officials. The public paid the biggest price with the strike, resulting in a complete shortage of PB products islandwide To critically analyze the issues that provoked the strike action certain important facts must be taken into consideration. Among them are:

1) Why was the Kaduwela plant closed down?

2) Why was the strike neglected at the inception?

3) What can be done to resolve the matter?

Ana Punchihewa. Managing Director of PB, says, the Kaduwela Factory was closed in an attempt to centralize operations and maximize exercise cost to guarantee the future health of the business.

“Kaduwela is no more economically viable as a soft drink production facility. It has inadequate infrastructure facilities for our future needs”. says Punchihewa. The CMU denies this fact and argues that the shut down of the Kaduwela Plant in November only took place when it became manifest to the decision makers of the company that the VRS had failed to achieve their objectives of a reduction in cadre levels. Bala Thampoe, goes further to explain that the shut down of the Kaduwela Plant amounted to a lock out of all workers of the plant in order to pressurise the workers and the union into accepting the retrenchment of 350 workers in the company.

They closed the factory when the VRS was not a success; only 80 people accepted it, so they closed Kaduwela and retrenched 350 employees Says Thampoe. that it Kaduwela was running at a loss why was is not mentioned in the company’s Annual Report and in The preliminary discussions last year. Punchihewa, however contradicts this. “The unions were aware of Pure Beverages Company’s financial situation and the need for restructuring says Punchihewa. “The decision to close Kaduwela was a business decision taken by the management to protect the future viability of the company”, he said. According to Thampoe, this is against the Trade Union Laws “No business decision can be taken without consulting the employees when it concerns the retrenchment of 350 workers”, says Thampoe.

Though the strike at Pure Beverages commenced on December 12th, the consequences of it was witnessed only in the latter part of December when Coca Cola products were unavailable in the market. The matter was suppressed in the business circles and hardly mentioned in the press. Reaction to the strike from both parties was also delayed to a great extent. The inquiry into the application to terminate the services of 350 employees continued through December to January. The first discussion on the strike action taken by employces was held on December 19h. with Trade Union Leaders, representatives of the Management of PB and the Minister of Labour and Vocational Trading Mahinda Rajapakse. The discussions ended in a dead lock. However, it was later reported that the Minister had requested the management of PB to re-open the factory and recommence discussion. It was also decided to meet again with the

Labour Commissioner, on January 6th. At this meeting two Sri Lankan Human Resources Managers, representatives of the CMU and the Labour Commissioner were present. The company expresed its willingness to employ all the workers who were laid off at Kaduwela at Biyagama, as a temporary measure to meet the excess demand during the festive season. This proposal was rejected by the Union who insisted they would only call off the strike only if the Kaduwela factory is re-opened. The failure to resolve the issue resulted in another meeting fixed for January 15, 1997, which was later postponed to January 21,1997. During this period, PB made a public announcement requesting all workers to return to Biyagama and work there until the issue is resolved. On January 17th, workers met and took a unanimous decision not to agree to the proposition and to continue with the strike action. The Labour Commissioner Wimalasena, told “BusinessToday” that he had made a proposal to PB to open the Kaduwela factory and commence negotiations. However, he had received no response from them.  On January 21st, all the parties met again in a renewed effort to resolve the matter. PB was represented by a new Human Resources Manager Samarasinghe, who prioritised the retrenchment of the workers as the issue at stake. Bala Thampoe representing the workers agreed to this but pointed out that the retrenchment was a result of the closure of the factory. The Labour Commissioner then called on PB’s Human Resources Manager to withdraw the application for the termination of the service of employees and discuss the issue with the unions. PB stood firm on the decision to keep the Kaduwela Plant closed but agreed to submit proposals on possible discussions on the issue of retrenchment. Both parties agreed to meet again on January 30th. Despite the discussions, the strike action launched by the employees of PB continues for over 6 weeks while CC products are virtually unseen in the market. Analysts point out that the loss suffered by PB is probably billions.

The issue has already claimed international attention. The International Union of Food, Agriculture, Hotel. Restaurant. Tobacco and the Allied Workers Association has written to both F & N, CC, Singapore and CC. Atlanta calling for the reopening of the Kaduwela factory and a speedy resolution to the matter. According to Punchihewa. PB. has received a letter from the International Union which has been acknowledged. The matter is now at an international level and has created much concern. Some analysts attribute the delay on the part of the management to resolve the issue as an attempt by F & N to run the company at a loss and buy

over the remaining shares, while others say it is an attempt by the Directors to appoint Ana Punchihewa as Chairman of the Company Punchihewa, in his interview with “Business Today” denied the latter view. However, the deadlock in negotiations has worsened the situation. The management of PB insist on continuing the closure of the Kaduwela Plant due to the heavy losses in running the Plant, which have resulted in the termination of the services of 350 employees. The employees meanwhile insist the closure of the factory is a result of the failure of

the VRS and has left 350 employees without jobs. The arguement of both parties are endless while efforts to reach a resolution on the matter has been a failure. The biggest appeal to recommence production at PB however, comes from the public, who want Coca Cola products to be brought back to the market, so that it can regain its position as the number one soft drink in Sri Lanka.

Related Posts

A New Era of Unity, Justice, and Transformation: President Anura Kumara Dissanayake’s Vision for Sri Lanka
Business Notebook

Contaminant-free Drinking Water

FEBRUARY 1997

Printing -Is the Ink running Out?

Business Notebook

Softness through Soflite

business-today-logo

Location

20-2/1 Lauries Place Facing R A de Mel Mawatha Colombo 04.

Contact

+94 715 134 134

Email

info@btoptions.com

© 2023 BT Options. All Rights Reserved.