Workers at a major Coca-Cola distributor are on the picket line.

Teamsters Local 830 announced on April 16 that its members unanimously voted to strike against Liberty Coca-Cola Beverages, citing demands for better pay, healthcare, and retirement benefits.

The franchise, located in North Philadelphia, is Coca-Cola’s biggest bottler and distributor in the region. Some 400 union members, including drivers, warehouse, and production workers, as well as sales and marketing staff, are employed at the plant.

According to a Teamsters manager, the union engaged in about 18 rounds of bargaining with Liberty—to no avail. Members “overwhelmingly” rejected signing a new contract that was called “insulting” in a union statement. Union members’ previous contract expired on April 15.

“We presented a contract for our 400 members that offers the highest wage increases in Coca-Cola/Teamster Local 830’s history, along with a generous health and welfare benefits package,” Liberty Coca-Cola said in a statement.

But union leadership disputes the “generous” nature of Liberty’s offer. “It’s not what you need to stay up in today’s inflationary times,” said Daniel H. Grace, Teamsters Local 830 secretary-treasurer, in an interview with NBC10 Philadelphia.

The union hopes to return to the negotiating table with Liberty as early as April 18, according to a Teamsters Local 830 spokesperson.

Union leadership didn’t support the proposed contract, despite Liberty’s claims

Liberty said in its statement that Grace “endorsed” the proposed contract rejected by union members. But the claim is

“utterly disingenuous and misleading,” Grace responded in an email to Quartz.

“The document they referenced in their statement was a simple acknowledgement that I agreed to take the proposal to my membership for a vote,” he added. “They knew that to be the case. It was not an acceptance of their offer.”

How long will the Liberty Coca-Cola strike last?

The union plans to strike until the contract dispute is settled. The last time Local 830 went on strike in Philadelphia was in 2004, for two weeks.

Liberty said it has a “contingency plan” in place to continue its operations, which include the distribution of not just Coca- Cola but also products like Dasani, Dr. Pepper, and Sprite to thousands of retailers across New York, New Jersey, and Pennsylvania.

Labor action at other Coca-Cola franchises

Workers at other Coca-Cola plants both in the US and overseas have also fought with management in recent years overpay and benefits.

In December 2021, members of Teamsters Local 773 went on strike at a Coca-Cola plant in Bethlehem, Pennsylvania, in order to maintain their pensions. They picketed for almost six weeks before reaching a contractual agreement.

Last summer, workers in Yorkshire, England, threatened to go on strike over a pay offer from their employer, Coca-Cola Europacific Partners, stating it amounted to a wage cut despite the franchise’s £1.6 billion ($1.98 billion) in profit for 2021.

Adapted from: https://qz.com/workers-at-one-of-coca-cola-s-largest-us-bottlers-are-o-1850344245

QUESTIONS 1: 30 MARKS

Analyse the ongoing labour strike at Liberty Coca-Cola Beverages through the lens of Classical Management Theories.

QUESTIONS 2: 30 MARKS

Critically discuss how Liberty Coca-Cola Beverages’ approach to labour relations aligns with the market orientations. Address how each orientation might influence the company’s relationship with its employees and its overall organizational strategy.

QUESTIONS 3: 30 MARKS

Critically evaluate how performance appraisals could be used as a management tool to address the labour issues highlighted in the Liberty Coca-Cola Beverages strike.

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Management Assignment Answers: Expert Answers on Above Questions

Classical management theories and the Liberty Coca-Cola Strike
Scientific management: This classical Management Theory focuses on efficiency and output and in the given case, liberty emphasizes on a record wage increase without considering the cost of living, in this shows the focus on higher productivity rather than on employee well being.
Administrative theory: This theory is based on the principle of equity and fair remuneration but these aspects are lacking in the given case scenario.
Implication: The conflict is mainly because of a top down approach followed by the management, and it indicates that the participative decision making process is completely ignored and it is the management control that dominates.
Labour relations and market orientation
Production orientation: The production orientation approach requires the company to focus on efficient operations and post control which would ultimately cause strain on labour relations.
Sales orientation: The aggressive distribution and marketing strategy with the objective of increasing sales may put pressure on the employees.
Product orientation: The product orientation approach would lead to maximum focus on product quality whereas the worker grievances may not get resolved. 

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