Hindustan Coca-Cola hikes salaries despite coronavirus impact on sales
Hindustan Coca-Cola Beverages who are the bottling partner of Coca Cola in India did a strange announcement during coronavirus pandemic.
While other leading firms around the globe are practicing job cuts and salary cuts just opposite to that Hindustan Coca-Cola Beverages (HCCB) will give a 7-8 percent salary increment to its 7,000 direct employees that will come into effect from April 1, 2020.
The spokesperson of the company said in an email. “The merit increase (annual increment) is for all employees of HCCB and a function of several factors including employee performance in the preceding year,”
The company also said that there will be no lay-off or salary reductions because of the disruption caused by coronavirus pandemic and subsequent lockdown.
The impact of the disruption caused by coronavirus pandemic is expected to be huge on Coca-Cola.
In a post-earnings investors call last week, CEO of Coca-Cola James Quincey said that in some markets like India
Coca-Cola’s unit case volume declined by 5 percent across its bottling investment group in all its world markets for the January-March quarter.