Following the labour strife, Pepsico has suspended its operations at the Kanjikode plant in Palakkad. The statement released by PepsiCo India stated that it had earlier announced franchising of its company-owned bottling operations in South and West regions to Varun Beverages Limited (VBL), subject to receipt of necessary statutory approvals. The company had initiated discussions with all relevant stakeholders.
The release mentioned, “However, workmen at the company’s Pallakad plant in absolute disregard of the due process of law, have not only resorted to an illegal strike but have also threatened other company employees. PepsiCo considers the safety of its employees with utmost priority and therefore, to ensure the safety of all its employees and to protect the plant and machinery, the Company has suspended production at its beverage plant located at Palakkad, Kerala.”
The company stated that it will resume production once the situation is conducive for operations at the plant. Pepsico had transferred nine units including the Palakkad unit to VBL. The workers have been striking inside the plant for the last two days demanding the protection of the interests of the workers including their service benefits.