Pepsi (PEP) Loses Battle Over 'Sin Tax' in Upstate New York
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PepsiCo (NYSE: PEP), the proprietor of food items like Mt. Dew, Lays Chips, and Fritos, may now be in some hot water over a potential breach of contract with its upstate New York union workers.
According to the NY Post, The National Labor Relations Board (NLRB) ruled that Pepsi's "sin tax," levied on workers who are overweight or smoke, withheld key information which would have allowed the union to shop for a better health plan. Information included age and gender, which would make it possible for the union to get a quote. Pepsi argued that revealing gender would violate their privacy laws, particularly since there are only 8 female workers in the region.
At $50 per month per worker, Pepsi has said the fee would be waived for those who participated in a four-to-six week wellness program (how do they determine the length of time, is our question).
Reps for some 300 drivers, salespeople, and warehouse workers in PepsiCo's Latham, Binghamton and Syracuse plants filed the complain last November.
Ultimately, the NLRB said confidentiality was "trumped" by the union's need for information.
Pepsi is 0.3 percent lower Wednesday.
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According to the NY Post, The National Labor Relations Board (NLRB) ruled that Pepsi's "sin tax," levied on workers who are overweight or smoke, withheld key information which would have allowed the union to shop for a better health plan. Information included age and gender, which would make it possible for the union to get a quote. Pepsi argued that revealing gender would violate their privacy laws, particularly since there are only 8 female workers in the region.
At $50 per month per worker, Pepsi has said the fee would be waived for those who participated in a four-to-six week wellness program (how do they determine the length of time, is our question).
Reps for some 300 drivers, salespeople, and warehouse workers in PepsiCo's Latham, Binghamton and Syracuse plants filed the complain last November.
Ultimately, the NLRB said confidentiality was "trumped" by the union's need for information.
Pepsi is 0.3 percent lower Wednesday.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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