Five Teamsters unions across the US have lodged charges against PepsiCo for alleged unfair labour practices, citing the company’s enforcement of “anti-worker policies.”
The complaints were filed by unions based in Illinois, Indiana, and Iowa with the National Labour Relations Board of the country.
They allege that PepsiCo has imposed “unlawful work rules” that restrict employees from discussing their wages and working hours.
Moreover, the unions have accused the owner of Pepsi Max and Lay’s snacks of obstructing and deterring workers from forming or joining labour organisations.
Jeff Padellaro, the director of the Teamsters brewery, bakery, and soft drink conference, stated, “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.”
“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,” he added.
Union representatives are currently in discussions with PepsiCo concerning new contracts for employees in Illinois and Indiana.
Dustin Roach, president of Teamsters local 135, remarked, “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 response, PepsiCo issued a statement to Just Food asserting its compliance with US labour laws and denial of 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 declared.
In other news, PepsiCo CEO Ramon Laguarta noted a “slowdown” in the US market in February after observing a decline in beverage volumes.
As a result, PepsiCo has adjusted its full-year guidance to anticipate at least 4% organic revenue growth and a minimum of 8% growth in core constant-currency earnings per share. Previously, the company had projected organic revenue growth between 4% and 6% and core constant-currency earnings per share growth in the high single digits.
For the fiscal year 2023, PepsiCo reported a net sales total of $91.5bn, achieving a 9.5% organic growth. In the fourth quarter, the total revenue was $27.85bn, slightly down from $28bn the year before.
PepsiCo’s fourth-quarter operating profit was reported at $1.68bn, a significant increase from $815m a year earlier. The full-year operating profit was $11.99bn, up from $11.51bn in 2022.
The company is due to announce its financial results for the first quarter of fiscal 2024 tomorrow, 23 April.