Belching Out the Devil

by Mark Thomas

  India

  21. According to the Company website, ‘indirectly, our business in India creates employment to more than 150,000 people’. a) Of this figure, how many is casual or outsourced labour working within the plants? b) Can you break down this figure into categories? Does this figure include street vendors, outsourced workers, delivery drivers etc?

  The Company and its bottling partners provide direct employment to more than 10,000 people in India. In addition, soft drinks being a seasonal business in India, the Company and its bottling partners also employ nearly 10,000 contractor’s workmen during the peak season (summer season). This positive economic impact is multiplied by the employment generated through our chain of distributors and retailers, through our vendors and suppliers, through the transporters, signage painters, point of purchase and other marketing material designers and manufacturers etc. As per an estimate by National Council of Applied Economic Research (NCAER) the soft drink industry generates an overall employment of 1,300 for every 1 million cases sold.

  22. What financial benefits - tax incentives/subsidies/ infrastructure payments etc - were given to Coca-Cola for building their plant in Kaladera?

  In order to fuel economic development in remote areas, the governments of all states set up Industrial areas to encourage industries to invest in economically undeveloped/underdeveloped areas. The government gives financial incentives such as tax exemptions of 5-7 years etc. as per the policy. The Coca-Cola plant at Kaladera was given sales tax exemption as per the Industrial policy of the Rajasthan State government.

  23. How much ground water has Coca-Cola extracted each year for its plant in Kaladera for the last five years?

  24. What on-going relationship regarding rainwater harvesting do Coca-Cola and the Rajasthan Ground Water Board have?

  Coca-Cola in India has undertaken a range of water conservation and awareness programs across the country. These programs are undertaken in partnership with Central Ground Water Authority, State Ground Water Boards, Resident Welfare Associations, Market Welfare Associations, Schools and Colleges, Industry Associations, NGOs and local communities. In Rajasthan also the Company has undertaken a range of water conservation initiatives like revival of traditional water bodies, installation of rainwater recharge shafts, rooftop rainwater harvesting projects etc. These projects have been undertaken under the guidance of Rajasthan State Ground Water Board. Thus, while there is formal relationship that exists between Rajasthan State Ground Water Board (RSGWB) and the Company, RSGWB focuses on initiatives that could enhance groundwater levels and hence have provided guidance to our rainwater harvesting initiatives in the state and have also assessed them periodically.

  25. Specifically, how many rainwater harvesting shafts does Coca-Cola have in its rainwater harvesting scheme in Kaladera? And over what area?

  The Company has installed 143 recharge shafts in Kaladera and surrounding areas spread over an area of 17 sq. KMS

  26. How does Coca-Cola monitor its rainwater harvesting scheme?

  The RWH schemes are monitored through defined protocols. For any location, before establishing any Rainwater Harvesting (RWH) system, studies are done with respect to area available for recharge, average annual rainfall, the type water harvesting area (to determine the coefficient of recharge) and any assumptions/considerations made in site selection. The site selection would depend on ground water situation, infiltration capacity of the local hydrogeology, and need for RWH intervention, including the ownership of such intervention. The established technical feasibility is vetted by local government or research agency involved with water resource management and the designs are finalized. The structures are executed by expert agencies and its completeness is verified by the competent technical experts. Usually, the executing agency is a local NGO group and would have responsibility to maintain the developed structure for period of three years initially. We have also developed a monitoring protocol to maintain the structures on annual basis to understand its full functionality and usefulness. Each year the incident rainfall data is obtained from nearest government meteorological observatory at the end of the year and the estimated recharge potential is revalidated by inserting the appropriate value of rainfall.

  In addition, the Company undertakes regular maintenance of most of the structures with help of NGOs/ environmental groups. The Company, along with community/NGO, tries to take water table readings before and after monsoon, keeps historical data, conduct community interviews, facilitate media visits to understand the efficacy and impact of such projects besides site visits by its own high-ranking officials.

  Besides the above, rising water level, non requirement to re-drill the borewells, functioning of defunct borewells, higher agriculture yield etc have been reported by communities across the country which serves as the community’s own assessment of the impact of RWH.

  27. What size are the rainwater harvesting shafts? And from what area (measurement) of land do they collect from?

  The recharge shafts provide a pathway to the collected rainwater to flow into the ground through a reverse filter system and recharge the ground water. Each shaft has a diameter of 2 feet and average depth of about 105 feet. While the catchment area is different for different locations, each shaft receives water from approximately 10-15 hectares. Each shaft goes to a depth of over 100 feet below the ground and is filled with filter media to enable quick recharge of the ground water.

  28. How much rainwater does the Coca-Cola Company estimate has been recharged by its rainwater harvesting shafts in Kaladera annually for the last five years? How is this monitored? Is it independently verified?

  Our rainwater harvesting through recharge shafts started in 2004. In Kaladera, the rainwater harvesting systems that the Company has installed have the potential to recharge about 15 times the amount of water the plant uses currently, assuming normal rainfall (560 mm/year). Even in recent years when rainfall has been below average, actual recharge has been more than 5 times the amount of water used for production of our beverages. (See attached report by the former Chief Engineer of Rajasthan State Ground water Department)

  Besides the Company’s efforts at monitoring the RWH projects in partnership with NGOs etc as mentioned above, senior hydrogeologists of State Ground water department have been independently monitoring the RWH initiatives. A former chief engineer of Rajasthan State Ground Water Board had independently assessed potential of the same (copy attached). Need this report [sic] Most recently TERI has assessed our water management practices including RWH projects in Kaladera area.

  29. How much rainwater does The Coca-Cola Company estimate has been recharged by its rainwater harvesting scheme on the two school roofs in Kaladera annually for the last five years? How is this monitored? Is it independently verified? What is the coverage area (measurement) of the roofs?

  In fact there are four educational institutions are covered under roof water harvesting in Kaladera locations. The total roof area covered is about 6,400 square metres and the design RWH potential at average annual rain fall is about 3,400 cubic metres.

  The monitoring activity is detailed under question 8 [sic] above.

  30. What are the specific calculations that led Coca-Cola to claim its rainwater harvesting structures in Kaladera recharge five times more water than it uses even in drought years, and furthermore has the potential to recharge over 50 core litres of ground water annually at average rainfall?

  There are accepted norms as adhered by Central Ground Water Board, UN agencies, Govt. bodies for estimating RWH potential from different surfaces. While for roof top a coefficient between 80-85% is well accepted (given that recharge pit/well/shaft is designed to receive that quantity of water) and for surface water coefficients between 10-20% are accepted, depending on land use/topography, intensity of rainfall, nature of soil etc.

  Even with most conservative estimate for catchment of 0.1 sq KM for each shaft and a coefficient of 10%, these shafts would receive over 850 million litres of water.


  31. What is the Company’s response to the TERI report assertion in its plant specific recommendations for Kaladera, regarding Coca-Cola’s rainwater harvesting structures, that ‘since the rainfall is scanty, the recharge achieved through such structures is unlikely to be meaningful’?

  The TERI report notes that the Company is a relatively small user of water in Kaladera, tapping far less than one percent the area’s available water. In Kaladera, the rainwater harvesting systems Coca-Cola has installed have the potential to recharge about 15 times the amount of water the plant uses currently, assuming normal rainfall (560 mm/year). Even in recent years when rainfall has been below average, actual recharge has been more than 5 times the amount of water used for production of our beverages. Coca-Cola has reduced its water use ratio within the plant by more than 40% over the last five years. The Confederation of Indian Industries (CII) has recognized the Hindustan Coca-Cola Kaladera plant as a ‘Water Efficient Unit’ across industries at the National Awards for Excellence in Water Management. The Kaladera plant also has won the ‘Innovative Project Award’ for its contribution towards reduction in specific water consumption.

  32. What controls and monitoring have been put in place regarding treated wastewater through land application at Coca-Cola’s Kaladera plant?

  The wastewater is treated at the wastewater treatment plant at the manufacturing facility prior to use of treated wastewater for irrigating developed greenbelt at the plant premises. The treated wastewater complies with both the company and local standard on the wastewater treatment and disposal. The wastewater treatment plant is designed to treat 1000 m3/day wastewater, while average wastewater generation does not exceed more than 120 m3/day on an average. The overcapacity of the wastewater plant, resultant of the water conservation measures taken by the plant over the period ensures the consistent quality of the wastewater from the treatment plant.

  The treated wastewater is monitored in-house as well as external laboratory as per below mentioned frequency• Routine monitoring of about 8 parameters at in-house laboratory (Biological Oxygen Demand (BOD), Chemical Oxygen Demand (COD), Total Dissolved Solids (TDS), Oil and Grease (O & G), TSS (Total suspended solids),PH, Sulfates and Chlorides.)

  • Monthly check of 9 parameters required by pollution control board from Ministry of Environment and Forest (MOEF), India approved laboratory.

  • Quarterly monitoring of wastewater as per Coca-Cola standards.

  • The monthly monitoring of wastewater report is submitted to state pollution control board for their records.

  33. What controls and monitoring are there of the groundwater within the application area of treated wastewater at Coca-Cola’s Kaladera plant?

  The Company’s bottling plant at Kaladera plant uses groundwater (borewells located inside the plant) as source of water. The groundwater within the plant is monitored on annual basis which has hardly shown any deterioration in quality over the period of time. External borewells at upstream and downstream are being monitored (since last 2 years) pre monsoon and post monsoon for quality of groundwater which has shown hardly any deterioration in the quality.

  34. What controls and monitoring have been put in place to ensure that the soil’s carrying capacity should not be exceeded within the application area of treated wastewater at Coca-Cola’s Kaladera plant?

  An area of about 40,000 sq. metres has been developed as greenbelt in the plant. This consists of about 10,000 sq. metres of lawn area and about 1,600 numbers of trees. The greenbelt is irrigated by the treated wastewater by means of sprinkler system. This prevents any run off and water-logging in the greenbelt. On an average about 120 cu. metre/day wastewater is used to maintain greenbelt of 40,000 sq. metre (4 hectare) which is well within the standard of 134 to 180 m3 of water / hectare prescribed by the state pollution control board for sandy loamy soil.

  35. When did the Coca-Cola bottling plant in Ballia last produce beverages? What is its current operational status?

  Ballia plant was a co-packing facility owned by a franchise bottler. As part of business restructuring and consolidation, the production at Ballia was discontinued from June 26, 2007.

  36. When did the Coca-Cola bottling plant in Plachimada Kerala last produce beverages? What is its current operational status?

  The bottling plant at Plachimada in Kerala has not been operational since March 9, 2004.

  37. What is the current status of negotiations regarding the relocation of the plant in Kerala?

  We are continuously engaging with all stakeholders to ensure a win-win solution for all.

  Appendix C: The Non-Answers of Ed Potter

  Ed Potter is the Coca-Cola Global Workplace Rights Director and is in charge of labour issues. After the company blocked my formal attempts to communicate with him I managed to secure an interview from the time-honoured method of ‘bumrushing’, namely, I spotted him in the street and ran at him with a recorder [Chapter 14: The Road to Delaware]. He assured me that allegation of misconduct and labour issues would be investigated seriously, so alongside other questions that arose from our chat, I emailed him. This is the summation of our all too brief exchange.

  Sent: 05/01/2008 06:54 PM CET

  To: Ed Potter

  Subject: From Mark Thomas in the UK

  Dear Ed

  Good to see you at the AGM in Delaware the other month and I hope you are keeping well. I was wondering about some of the statements you made and wanted to follow up a few points.

  Firstly, on Colombia, I asked if the union that replaced Sinaltrainal (SICO I believe) negotiated a pay cut following the events in Carepa where Sinaltrainal was driven out of town and had their offices burnt down. You said you didn’t know, but would it be possible to find out?

  Secondly, you said there was good relations with twelve other unions, what is the number of members in each of these unions and what percentage of the workforce does this represent?

  Thirdly, you have said previously that CUT do not support the boycott call from Sinaltrainal. I was under the impression that CUT did support the boycott call, could you clarify this and provide the source for this statement?

  Fourthly, you said that casual workers in Colombia were not allowed to join an industrial trade union, I wonder if you might point out the law which you refer to?

  Fifthly, you said 31 per cent of the workers at Coca-Cola bottlers in Colombia were unionised, does this include casual labour? If it does not, what percentage of Coke workers are unionised if you were to include the casual workers into the equation?

  On the subject of India, I was reading in the Nation’s letter pages that you said that The Coca-Cola Company and its bottlers ‘indirectly create employment for 125,000 more [workers] in related procurement supply and distribution roles’. I wonder if you might break down the 125,000 figure for me? Does this figure include panawallahs and juicewallahs (people who sell Coca-Cola products from their stalls)?

  On the issue of passing on claims to you regarding the treatment of workers in developing nations, I wonder if you might spell out to me what measures would be taken to investigate the matters or indeed if you have initiated any measures? I look forward to hearing from you.

  Best Wishes

  Mark Thomas

  Subject: response to the email

  Ed Potter has referred your email to me. You can find information about our workplace practices on both cokefacts.com and on www.GetTheRealFacts.co.uk.

  Sincerely,

  Kari Bjorhus

  Director, Public Affairs

  The Coca-Cola Company

  Appendix D: Death Threat

  This is a copy of a death threat sent by the Black Eagles, naming Luis Eduardo aka Chile [Chapter 4: ‘Chile’]. This death threat was sent in February 2007.

  The Black Eagles call on the terrorists in the trade union of Coca-Cola - Javier Correa, Luis Garcia AKA El Chile, Domingo Flores AKA El Gordo, Nelson Perez - to stop the backlash against the Coca-Cola company - You have already caused e
nough damage - Stop this campaign against the employers of Santander who are supporting the downtrodden of this country - We declare that the military objective of the Black Eagles - how do you prefer death - torture - cutting up into pieces - coup de grace - in the style of Magdalena Medio and this is how you terrorists define it - So stop your campaign, the backlash - Remember Commander Mancuso doesn’t like a fuss.

  This isn‘t just a threat, we will carry it out. We will do it. The day will arrive.

  a This conversation really happened.

  b I had trekked up to the top of a mountain to see a dam that had been built by villagers to conserve water for the wildlife. The holy man lived in a tent at the top of a ridge. It was a tiring trip and he had offered a cup of tea. Sitting on the rug with him it had seemed rude to ask, ‘so what are you about then?’ So I did a lot of grinning, and bowing. His tent had grabbed the best spot, as it looked out across the long valley, green and lush from the dam water, and this scene rolled back as far as it was possible to see with the human eye. I did at one point say to the holy man,‘you’ve gt yourself a lovely view here, haven’t you,’ but somehow as the words came out of my mouth it sounded like I was talking about Littlehampton.

  c This is apparently not true but only in the sense that I have no facts to prove it.