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Labor Laws and Unions – Coca-Cola Raquel Jones Labor Laws and Unions – Coca-Cola Week two’s individual assignment is on labor laws and unions. This paper will provide a brief background on Coca-Cola, identify legal issues, determine which laws could be broken, and provide recommendations to minimize possible litigation. Determine what the benefits of joining a union are for an organization, what is the unionization process, how does a union bargain, and what effects does union bargaining have on the organization. Now let us explore the world of Coca-Cola. Background Doctor Pemberton was a pharmacist from Atlanta, Georgia with immense ingenious ideas. The Coca-Cola brand started selling at Jacobs’ Pharmacy for five cents a glass; today Coca-Cola is the bestselling and most desired soft drink and product in the World. “Unfortunately for Pemberton, he died in 1888 without realizing the success of the beverage he had created” (Coca Cola, 2011). Ten years later in 1898 congress passed a tax on all medicines and the Coca Cola Company decided to sale coke as a beverage instead of a medicine. Union bargaining How does a union bargain' That is a good question, a collective bargaining is the central part of a union it is the negotiation of the contract. This is when employees assemble to discuss and negotiate workplace issues with management. The outcome of the discussion/negotiation is the contract or agreement of the collective bargain of both sides’ terms. Unions sometimes push business owners to produce more marketable advantage to employees. Unions within business effect unionization, increase in wages, distended pension plans, and workforce reduction. Nevertheless, some employees within the Coca-Cola organization are content and feel taken care of many do not want to be part of a union and other want more. Legal issues and minimizing litigation Coca-Cola like any company faces legal issues and obstacles. In 1999, multiple children became ill in Belgium after drinking a Coca-Cola product. The company later found that the issue was due to a bad batch of carbon dioxide. Even though, the company corrected the problem; the social media focused harshly on the issues and belittled the company. The company has also had multiple ethical issues within the company, such as, influencing earnings, racial discrimination, and distorting market tests. Coca-Cola like any company should always have a plan to minimize possible litigation to prevent issues such as Belgium from escalating. Companies with litigation issues can also scare current and potential investors away which can upset the overall capital of a business. Based off the findings the Coca-Cola Company could have faced multiple lawsuits, lost the faith of customers and the assurance of investors. If a company does not acknowledge and fix wrong doings, that business may have to compensate injured parties. So, it is significant for companies to take safeguards to avoid litigation when possible. By applying following steps: Professional business practices, keeping good records, and implementing policies and procedures is a good way to avoid various forms of litigation. Businesses that follow these steps can significantly reduce the risk of litigation. Effects of the union In Colombia, “Coca-Cola bottlers enjoy extensive, normal relations with 12 unions and currently have collective bargaining agreements in place covering wages, benefits and working conditions. On average, wages for Coca-Cola workers are two to three times higher than the minimum wage” (Coca-Cola, 2011). The advantages of being in a union would be job security, increased wages, Medical, detailed job description and hours, and most of all someone to fight for your rights. The process of unionization is first inquiring about the union, selection request filed; set selection/election date, The National Labor Relations Board (NLRB) Election, get ready for negotiations, time for negotiations, ratification, and last becoming part of the union or not. Summary In summary, the Coca-Cola Company is the most refreshing, bestselling, most desired soft drink in the World. Unions are good and make large companies like Coca-Cola provide enhanced benefits to employees. Facing legal issues, obstacles, and minimize possible litigation are good ways to decrease company financial risk. The Coca-Cola Company is a good organization and the legal policies and procedure in place will keep them around for years to come. References http://heritage.coca-cola.com/