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Development of the global trade union network within the Nestlé corporation : can trade unions square up the power of transnational companies?
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2. General and specific context of the global trade union network within the Nestlé corporation Over and above the general circumstances affecting all global trade union networks in similar fashion, especially the lack of political/ legal support and the inadequate resources of local, national and global trade unions or union federations, the global trade union network within the Nestlé corporation is subject to specific conditions which determine(and have determined) its form and evolution. 2.1. The global company structure With a turnover of just under 90 billion Swiss francs and more than 250,000 employees, Nestlé is the largest food corporation in the world, the very embodiment of a globally active company. Production is dispersed among 508 in 85 countries; only about 2% of the companys output is produced in Switzerland, its country of origin. 208 factories are located in Europe, 165 in North and South America and 135 in Asia, Oceania and Africa. The companys activities span a broad range of diverse products, which are grouped together in the following brand categories: beverages(26.7% of turnover), dairy products, food and ice-cream(26.5%), prepared foods and food services(18.3%), chocolate, confectionery and biscuits(11.6%), petcare products(11.2%) and finally pharmaceuticals(5.7%). The six distinct divisions are managed according to different strategies and organisational methods. 3 It is hard for the global Nestlé trade union network to come anywhere close to mirroring this complex structure, especially since the corporate structure is not stable: take-overs and sell-offs, plant transfers, expansions and closures are constantly on the agenda. The IUF, which initiated the network and is still the main driving-force behind it today, is entirely guided in its actions bypragmatic 3 All figures are taken from the Nestlé annual report for 2003. 9