Second month of strikes for Major Chilean Pharmacy chain, Focus Reports
Release Date: 2010-11-05
Today, November 4th 2010 marks a month of striking by employees of Farmacias Ahumada in Chile (FASA). The pharmacy chain is one of the three major pharmaceutical chains in the country, together with Cruz Verde and Salcobrand. Together they control 93% of the market and have recently been accused by the Chilean authorities for illicit price cartel agreements. It should be mentioned that all three chains also have their own private brands, which has been a concern for most innovative pharmaceutical companies present in Chile due to the conflict of interest that is caused by pharmacies being the only points of sale for prescription drugs while also manufacturing these products. Additionally, the concentration of distribution channels is further exacerbated by the fact that Chile is among the few nations where OTC drugs cannot be sold on shelves, but rather must be handed out by pharmacist behind a counter.
The striking workers have blocked the entrances of more than 200 pharmacies across Chile with banners and signs in protest of their low wages and benefits. They are asking FASA for the guaranteed minimum wage of US$365 a month instead of what they receive today; a meager US$65 per month plus commissions on sales. They have been demanding for the improvement of the benefits for several years now and only decided to organize a strike when the last round of collective negotiations failed.
Moreover, FASA was recently bought by Casa Saba, a Mexican pharmacy group that is considered to be the largest in Latin America with 710 drug stores in Mexico and 355 in Peru. Employees are now concerned that the new foreign ownership will be even more detrimental to their benefits and welfare. Casa Saba has also several advertising contracts with television channels, which in protestors’ opinion impedes Chilean channels from covering the strike properly.
In the past month. little progress has been made by protestors who have been unable to reach a resolution with their employer. According to the worker’s union, the company has not brought any new proposals to the negotiation table and is adamantly holding on to its original offer., Workers do not consider those conditions to be suitable to their needs and insist to strike indefinitely until new conditions are provided to them.
While the strike has had a major impact on the company’ revenue, it is also affecting the economic welfare of the striking employees who will not be paid until the strike is called off. Despite this, the strike continues. The pharmacy chain is estimating its losses due to the strike at 900 million Chilean pesos (approximately US$1.9 million).The worker’s union is providing employees with some economic support as a means to alleviate their burden, and is also requesting that other organizations to do the same.
In an attempt to strengthen their case, workers have gone to the Mexican Embassy in Santiago de Chile asking for support to their cause.
| Type: | NORMAL |
| Company: | Focus Reports |
| Country: | 瑞士 |