Coca-Cola hit for neglecting protest from truckers

By Park Jae-hyuk

Coca-Cola Beverage Company has been criticized for avoiding its responsibility in a protest from truck drivers who have complained of excessively low transport fares that the beverage producer pays to a subcontractor, according to the Korean Public Service and Transport Workers' Union (KPTU) Wednesday.

The umbrella union said the truckers, who had transported beverages produced at Coca-Cola Beverage's factory in Gwangju, have held a rally in front of the factory since the subcontractor suddenly terminated a contract with them on Sept. 13.

The subcontractor notified them of the termination of contract by text message.

Before the strike, the truckers placed placards on their trucks to urge the subcontractor to raise freight charges.

They have claimed the fares have been lower than minimum wage as they have to pay motorway tolls, fuel expenses and insurance premiums.

Although the truckers have held 13 meetings with the subcontractor, they have yet to reach a compromise.

As the truckers tried to prevent Coca-Cola Beverage from using alternative trucks, they clashed with the police, and 12 of them were injured and 11 were booked.

Coca-Cola Beverage has claimed it cannot interfere in the conflict between the subcontractor and the truckers.

However, the truckers pointed out that the beverage maker caused the conflict with its low payments.

“Coca-Cola shifted its responsibility onto the subcontractor, and the subcontractor signs contracts with individual truckers, so the truckers have difficulties in complaining about unfair transport fares,” the KPTU said in a statement. “The subcontractor seeks profit from the structure, and Coca-Cola has also been able to benefit from low transport fares.”

The truckers said LG Group is also responsible for the recent labor dispute as LG Household & Health Care holds a 90 percent stake in Coca-Cola Beverage.

Coca-Cola Beverage, which LG acquired in 2008, has produced Coke in Korea with the liquid ingredient that Coca-Cola Korea supplies to it.

Coca-Cola Korea, a local subsidiary of Coca-Cola Company, has a 10 percent stake in Coca-Cola Beverage.

The truckers also claimed LG is the de facto owner of the subcontractor as the subcontractor's name is GU.

GU is pronounced as "ji-yu," but the truckers said the company's name refers to the surname of LG's owner family ― Koo.

The head of the subcontractor is also surnamed Koo.

“The world-famous LG Group does not need to tarnish its image by conflicting with dozens of truck drivers,” the KPTU said.