PepsiCo Says Tingyi Deal Won’t Change Employment Contracts
PepsiCo Inc.’s agreement with Tingyi (Cayman Islands) Holding Corp. won’t change the employment contracts in its bottling operations, the U.S. company said in an e-mailed statement in response to media reports about staff protests in China.
“As a responsible employer, PepsiCo is highly committed to protecting the interests and benefits of our employees,” the company said in a statement. The deal is pending government approval, it said.
All employees at PepsiCo’s Chongqing Pepsi-Tianfu Beverage Co. Ltd went on strike yesterday, asking the company to compensate them on Tingyi deal, the Economic Observer reported today. Staff in other Chinese cities including Chengdu and Nanchang also staged protests, according to the newspaper.
Tingyi agreed to swap a 5 percent stake in beverage business for PepsiCo’s bottling business in China.
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