The Teamsters Unions recently organized a conference call for Coca-Cola investors and financial analysts, warning them of growing labor unrest. The union claims that Coca-Cola’s workers are suffering from low morale as a result of poor labor relations involving such issues as restructuring, job security, pensions, and health care coverage. The union further warned of widespread work stoppages throughout North America. The Teamsters represent more than 18,000 workers at Coca-Cola in the US and Canada.
By attempting to enlist the support of shareholders and analysts, the Teamsters hope to pressure Coke into resolving issues in favor of the Union. It is a clever ploy, but one that sophisticated investors will not find credible. The tactic has been attempted in the past and, at best, has met with limited success. Yet, Corporate America must be prepared for an ever more aggressive labor movement to use such tactics, which – in the short run – may have a negative effect on stock prices.
