Coca Cola Collective Agreement

The consequences of this recent secret agreement are only now emerging. Transportation subsidies – fixed aid directly related to the cost of living in Indonesia – were suddenly reduced by 76%, despite the crucial importance of travel to and from Coca-Cola`s factories in the COVID 19 pandemic. Management announced that this had been implemented in accordance with the national agreement. Workers fear that further cuts will occur. Since management has already forced workers to legally accept an agreement they have not seen, Coca-Cola can continue to arbitrarily reduce benefits and remove duties in the name of this secret agreement. Using the social constraints of COVID-19 as a reason not to convene meetings to inform workers of the new agreement, management then ensured that workers were informed of their supervisors (a process called “socialization” in Indonesia). Employees saw a video and PowerPoint highlights, and then a document was signed to indicate their consent to the agreement. The laborer could not get a hard or soft copy of the agreement itself, but only a copy of the PowerPoint highlight. When the COVID 19 pandemic intensified in April and May and blocking measures were strengthened in several cities, management continued to collect workers` signatures for legal approval of the new agreement. Coca-Cola Indonesia – wholly owned by Coca-Cola Amatil in Australia – has refused to negotiate genuine workplace collective agreements with independent unions and has denounced the leaders of independent unions. Although the Ministry of Labour reaffirmed the status of these dismissed union leaders as elected union representatives, with the right to represent their members, Coca-Cola management refused to respond to their requests to discuss coVID-19 safety measures in the workplace. When Indonesia went to prison at the end of March, Coca-Cola`s management secretly signed a new national collective agreement with the pro-government national trade union structure created decades ago under Suharto`s military dictatorship to crack down on workers` rights.

The agreement imposes new conditions on more than 6,000 Coca-Cola workers, without any of them being able to obtain and read a copy of the actual agreement. FOR THE FIRST YEAR OF THE AGREEMENT, GROSS WAGES OF UNION MEMBER EMPLOYEES WILL BE INCREASED BY 535 LIRA PER PERSON PER MONTH, EFFECTIVE 01.01.2018 – IN THE SECOND YEAR OF AGREEMENT, GROSS WAGES WILL BE INCREASED BY RATE OF INCREASE IN CONSUMER PRICE INDEX PLUS 135 LIRA PER PERSON PER MONTH – SAID ON THURSDAY COLLECTIVE BARGAINING AGREEMENT WITH TEK: DIE THOMSON TRUST LEADERS. THE ANNUAL SOCIAL PACKAGE IS INCREASED BY ABOUT 13% IN THE FIRST YEAR AND BY A RATE OF INCREASE IN THE CONSUMER PRICE INDEX IN THE SECOND YEAR.