Dalian Coca-Cola, formerly one of the best bottled water factories in mainland China, has encountered problems since being taken over by COFCO Group. Not only has there been rumors of company mergers, but also the basic salaries of salespersons have been canceled. Some employees are only receiving a few hundred yuan per month, and in extreme cases, they are even paying money back to the company. Employees have revealed that “some leaders in COFCO form cliques and do not do practical work.”
On May 28th, “Food Insider” reported that an employee, referred to as A, from COFCO Coca-Cola Liaoning (South) Beverage Co., Ltd. (also known as Dalian Coca-Cola), disclosed that due to changes in the salary structure, many employees are only receiving a few hundred yuan per month, and in extreme cases, they are even required to pay the company.
A payslip shows that the employee’s monthly income subtotal was only 2431.93 yuan, with a take-home pay of only 786 yuan after deductions for social security, union fees, and taxes. On another colleague’s payslip, the income subtotal was 2039.28 yuan, with a net payment of only 430.70 yuan.
A said, “There was an employee who worked for a month, and still had to pay the company 200 yuan. The money earned that month was not enough to pay for insurance. Eventually, the person resigned.”
According to a communication letter on salary distribution for business personnel released by Dalian Coca-Cola, in order to motivate salespersons to generate more sales revenue, the company initiated an income reform project, mainly involving adjustments to the salary structure. The salary was changed from “basic salary standard + monthly bonus standard” to “performance rewards + sales commission income”, meaning there is no longer a basic salary.
A mentioned that on the eve of this salary adjustment, Coca-Cola held a staff representative assembly, stating their intention to cancel the basic salaries of all salespersons, which many employees did not agree with. Without convening a staff representative assembly, the company enforced the decision. A recalled that at that time, the company forced all salespersons to sign, threatening to transfer or confiscate their phones if they refused. More than a year later, they are still on the road to seeking justice and finding it difficult to secure new employment.
Another employee, B, involved in the incident recalled that during the communication of signing the “communication letter on salary distribution for business personnel”, the company informed them that failure to sign would result in a transfer to a merchandise handler position at a large supermarket. After refusing, HR provided two options: a Consumer Experience Audit (CEA) Investigator or a bulk water sales position, but the salary gap was too big for the former, and the workload too high for the latter. Seeing the transfer as punitive, the employee refused and was later dismissed.
Not only salespersons but also logistics personnel have been caught up in this salary dispute. A stated, “If the production line is gone, what’s the point of logistics?”
Recently, there have been rumors in the industry that Coca-Cola near the Jinxiu area in Dalian has stopped production. It is speculated that either Dalian Coca-Cola is withdrawing from Dalian and merging with the Shenyang company, or Dalian Coca-Cola is preparing to build a new factory in Yingchengzi. Netizens commented that “they say it’s integration, but in fact, the Dalian plant is failing.”
Insiders revealed that with the production line moving to Shenyang, a large number of employees are facing the same issues, but the company is unwilling to compensate. The next group to be affected will likely be the logistics staff. The insider stated that logistics staff have already formed a rights protection group to discuss countermeasures.
Another insider mentioned that the Dalian plant used to be one of the best bottling plants in the country, but it started to decline after being taken over by COFCO. “Some leaders in COFCO form cliques and do not do practical work. Leaders have meals while employees accompany them in the corner, and also have to ensure the supply of drinks. If leaders fail to meet targets, they make employees pay.”
Public information shows that in 2000, COFCO Group and Coca-Cola jointly established COFCO Coca-Cola Beverage Co., Ltd. (“COFCO Coca-Cola”), with COFCO Group holding 65% of the shares and Coca-Cola holding 35%. However, the equity transfer was not completed until April 1, 2017.