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Coca-Cola’s closure plans in Germany face union backlash

Caspar Frey by Caspar Frey
October 3, 2024
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Coca-Cola has announced plans to close five production and logistics sites in Germany by 2025, affecting over 500 jobs. The food and beverage union NGG strongly criticizes this decision, calling it an act of “pure profit greed” rather than economic necessity.

Coca-Cola’s closure plans in Germany face union backlash
The NGG union sharply criticizes Coca-Cola’s closure plans in Germany.

Impact on workforce and operations

The closures will affect facilities in Cologne, Neumünster, Berlin-Hohenschönhausen, Bielefeld, and Memmingen. Additionally, job cuts are planned at locations in Fürstenfeldbruck, Halle, Achim, Herten, and the company’s headquarters in Berlin. In total, 505 positions will be eliminated throughout the coming year, while 207 jobs will be relocated to other sites, and 78 new positions will be created. Coca-Cola attributes these changes to evolving beverage logistics, citing a significant decrease in direct customers and orders at affected locations. The company aims to redistribute its capacities to other facilities for better utilization, stating these changes are necessary “to remain competitive.”

Union response and environmental concerns

Freddy Adjan, deputy chairman of NGG, argues that despite Coca-Cola’s substantial global profits, the company is destroying 500 jobs in Germany. The union criticizes the outsourcing of work to external service providers and argues that closing regional sites contradicts the company’s promise of being a global brand with local production and delivery. NGG also highlights environmental concerns, noting that reducing locations will result in “thousands of additional kilometers of transport” on roads, which is neither sustainable nor ecologically sensible. The city of Cologne has expressed regret over the decision, with Andree Haack, Associate for Urban Development, describing the departure as “an immense loss” for the industrial location.

Business performance and historical context

Despite the closures, Coca-Cola Europacific Partners (CCEP), responsible for bottling, sales, and distribution in Germany, reported record sales of 4.1 billion liters of beverages in 2023. CCEP Managing Director John Galvin highlighted the company’s successful expansion in food retail, discount stores, and gas stations. Currently, CCEP employs approximately 6,500 people across 27 locations in Germany, including 14 production plants. This marks a significant reduction from 2015, when the company operated 52 sites, including 20 production facilities, and employed around 9,500 people. The company has stated that discussions with employee representatives will begin soon, aiming to avoid compulsory redundancies through alternative positions at other locations and mutually agreeable solutions.

Tags: Coca-ColaCoca-Cola in Germany

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