Coca-Cola, Friend or Foe?

The Coca-Cola Company has developed the perfect business model for union-busting. While Coca-Cola is fully unionized, it is subdivided into two publicly traded corporations (KO and CCE, NYSE) and several local bottling centers all over the country. By doing this, they are able to absorb deficits caused by regional strikes as witnessed in this week’s strikes in California and Connecticut. These two locations have separate labor contracts and just happen to be striking at the same time. However, for the most part these labor disputes will flare up in isolation due to the labor “firewalls” Coke has in place. As Coca-Cola seeks to negotiate contracts in these two areas, the strike should only make a small dent in global sales and revenue.

This practice is not subversive or sneaky, it is smart and it saves Coca-Cola from having to permanently lay off employees or downsize its operations when contracts are up for re-negotiation. It benefits the corporation. It benefits the worker.

Who is left out?…the Unions.

I’m sure the Union will just stick it to the workers in dues.