PepsiCo in court over alleged unfair labor practices in US 

US – Five Teamsters unions in the US have filed charges of unfair labor practices against PepsiCo, alleging the food and beverage giant has “anti-worker policies” in place.  

The unions, located in Illinois, Indiana, and Iowa, have lodged complaints with the National Labor Relations Board, claiming that PepsiCo has implemented “unlawful work rules” prohibiting workers from discussing wages and hours, and is hindering workers from forming or joining labor organizations. 

Jeff Padellaro, director of the Teamsters Brewery, Bakery, and Soft Drink Conference, stated, “Pepsi should be at the bargaining table to reach an agreement that rewards the hardworking Teamsters who keep operations moving, but the company is subjecting our members to antiquated and illegal work rules that violate their basic rights.”

The unions assert they will take coordinated action against PepsiCo until it engages seriously in negotiations. 

Union officials representing PepsiCo workers are currently negotiating new contracts for staff in Illinois and Indiana.  

Dustin Roach, president of Teamsters Local 135, emphasized the need for PepsiCo to address workers’ concerns at the bargaining table, warning of potential street protests if the company fails to do so. 

In response, PepsiCo stated, “We have and will continue to follow US labor laws,” denying any unfair labor practices. The company asserted it has been negotiating in good faith with Teamsters across Illinois and Indiana to achieve mutually agreeable collective bargaining agreements. 

This development comes amid challenges for PepsiCo, as CEO Ramon Laguarta recently noted a “slowdown” in the US market, leading to revised guidance for organic revenue growth and core earnings per share growth.  

Despite reporting net sales of US$91.5 billion for fiscal 2023, delivering 9.5 percent organic growth, the company faced a marginal decline in fourth-quarter revenue. 

However, PepsiCo’s fourth-quarter operating profit saw a significant increase from the previous year, reaching US$1.68 billion, with full-year operating profit also showing growth.  

The company remains committed to serving its local customers and consumers while navigating challenges in the market. 

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