Labour strife hits Coke's supply network

Labour strife and litigation has impacted the distribution network of Hindustan Coca-Cola Marketing Company since October 18 with nearly 300 plus 'route agents' and loaders alleging that they are physically being prevented from resuming their duties despite a industrial court order that has directed Coca-Cola to allow them to do so.

Jayant Khosla, Coca-Cola India's region vice-president, through an e-mailed response told Business Standard: "This issue is between the company's clearing & forwarding agent (C&FA), who is an independent party and its business partners - the sales agents (route agents). We believe the two sides are working to resolve the matter."

However, of the three depots (C&FA) located in Mumbai, only the central Mumbai depot has reported normal functioning, while the Sewri (south central Mumbai) and the Kandivali (north Mumbai) depots are able to maintain only low outages of the products.

Both the affected depots (Tirupathi Corporation in Sewri and Sreenath Trading in Kandivali east) are run by the C&FA agent of Coca-Cola Devendra Joshi, who says the issue pertains to outstandings owed to him by the route agents.

"The dispute is between myself and my business partners (route agents) who have to clear around Rs 35 lakh in outstanding dues. The problem arose (on October 18) when there was an increased demand for Coca-Cola during the Diwali period when credit was extended to the retail outlets. When the outstanding amount created a cash flow problem for me, I demanded the payments be made by them only after which they would be permitted to resume duties (loading trucks with the products and taking the stock out of the two depots)," Joshi says.

However, Rohit Shetty, vice-president of the Hindustan Coca-Cola Bottling Southwest Agents Trade Association (HCBSAT), says the issue is being contorted in a bid to coerce the workers to register with a new trade union.

"The fact of the matter is we have a labour court order issued on Wednesday directing Coca-Cola to allow the workers to resume their duties till the next hearing that is slated for November 5. Inspite of this order, Joshi and the local police have been intimidating the workers who report to duty and are not permitting them to load the trucks and take the products out in the market. We operate on a rolling credit basis and need to continue supplying to be able to collect the outstanding amounts owed by various retailers," Shetty says.

The industrial court (a copy of the order is available with Business Standard) on Wednesday (October 29) has issued notice to Coca-Cola while directing them to allow the workers (186 of them approached the court) to resume their duties till the next hearing.

Says Shetty: "We are moving against the company for committing contempt of the court even as the local police has been threatening and intimidating the workers against reporting on duty. They do not give any cognisance to the court's directive."

Senior police inspector of the Samata Nagar police station V R Sastam (where the Kandivali depot is located) when contacted said: "Under section 341 of the criminal procedure code, the (workers) are not supposed to assemble. We have directed the workers to procure a court directive for providing them police protection to resume their duties before we can do anything. We will ensure that law and order is not disrupted by anyone."

Vasantraj Sarsare, assistant commissioner of police (north region), said that the C&FA was only keen that the workers sign a written undertaking before resuming duties as they had a lot of outstanding amount recoverable from the workers.