Negotiations to renew the collective bargaining agreement covering Coca-Cola Luxembourg’s 68 employees are currently at an impasse, with the company’s management refusing to seriously negotiate wage increases despite the fact that the company is reporting excellent results.

Right from the start of negotiations on November 16, 2022, the OGBL had denounced a lack of transparency in the company’s communications. Indeed, the balance sheet presented by management mixed the Group’s figures for Belgium and Luxembourg, making it impossible to know the precise financial situation for Luxembourg. This lack of transparency was a clear sign of the forthcoming discussions.

Still confusing the Group’s financial situation in Luxembourg and Belgium, management then communicated to its employees, on February 16, more favorable figures than those previously presented during the negotiation meetings: +12.5% in sales, +9.5% in sales volume and a +13.5% increase in net profit. At Group level, sales rose by +15.5%, net income by +12.5% and shareholder value by +13%.

Although it is the employees who have created this wealth through their commitment, Coca-Cola’s management refuses to give them a slice of the cake. The OGBL believes that it is legitimate for employees’ work to be fairly valued and recognized.

However, management does not see it that way, and has decided to simply dismiss the employees’ catalog of demands. From the beginning of the negotiations, the management side considered that negotiations would fail if the union side refused its proposal, namely, in the first instance, a single bonus of 200 euros for the year 2023. This proposal was later revised upwards following discussions encouraged by the OGBL, but remains meagre in view of the profits made by this retail giant. Furthermore, the majority of employees reject the proposal for a single bonus, as it would undermine the principle that has historically prevailed in collective bargaining at Coca-Cola Luxembourg. This would mark the beginning of the end of recurrent salary increases for Coca-Cola employees.

The OGBL deplores the current failure of negotiations and calls on Coca-Cola management to re-establish a constructive dialogue with employee representatives, in order to avoid social litigation before the Office National de Conciliation.

Press release by the OGBL Commerce Syndicate,
May 30, 2023