European Coca-Cola Bottler in Spain Wins Labor Suit

European Coca-Cola Bottler in Spain Wins Labor SuitOn Friday, the national court of Spain said that a European Coca-Cola bottlers, one of the main in Europe could go ahead with its plan of downsize its Spanish operations. This brings an end to the tense legal situation that build up centering this closure of the bottling plant. There were street protests, attempted of a boycott of Coke products as well as strikes.

The court's decision said that the bottler, Coca-Cola Iberian Partners, had acted "in good faith" while deciding to relocate workers to different jobs or plants in case when one of the key bottling factories was converted into a logistics center.

This case was an important one for testing the changes in labor market policy that have been introduced by the conservative Popular Party of Prime Minister Mariano Rajoy. He is seeking re-election in December and has opponents mostly from the left-leaning wing. Spain has improved in the economic ladder but still continues to battle an unemployment rate which is more than twenty two percent. The problem in the factory started when labor unions challenged the action of downsizing plan by the company in court. The bottler had to rehire the workers who dismissed as the workers said that the company did not inform them of the changes properly. The Coca-Cola Iberian Partners agreed in rehiring the workers but rejected their demand to give them the same tasks which they performed prior to the downsizing.

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