Thursday, January 28th 2010

By selma al-samarrai

For Coca-Cola:
On Feb. 3 and Feb. 4, McMaster undergraduate students face the option of choosing whether the McMaster Student Union (MSU) should be able to get into an exclusive contract with Coca Cola. The last time a referendum was taken on this issue was in 2005, where the majority vote was against an exclusive deal with Coca Cola due to a large concern over their unethical global business practices. In March 2009, several Student Representative Assembly (SRA) members felt that the students who voted in 2005 may no longer represent the current popular student opinion, and therefore called for a referendum. Referendums are possible either through three per cent of McMaster’s undergraduate population signing a petition, or two-thirds of the SRA pushing fourth for a referendum.
The last time McMaster University and the MSU formed an exclusive contract with Coca Cola was from 1998 to 2008. It was then extended to December 2009 as a part of the contract, which stated that if the 10-year period does not meet a specific quote, the deal is extended for two years. The University decided to form the contract in 1998 when the school was experiencing financial difficulties following the provincial governments, “Common Sense Revolution” which deprived of approximately $17 million in revenue. The Coca Cola contract provided McMaster University, the MSU and fellow signing parties with total revenue of $10 million. Immediately prior to the contract in 1998, 91 per cent of cold beverage sales on campus were Coca Cola products.
Since the 2005 referendum that voted against exclusive deals with Coca Cola, the University has respected the students’ decisions. However, Roger Trull, the Vice President of McMaster University explained, “We’re going right into another situation like the one in 1995, when the University’s finances were in a desperate situation and we have to find revenue wherever we can.”
The upcoming referendum votes only on whether the MSU should pursue any future exclusive deals with Coca Cola, not the University. Though the University has chosen to respect the popular student opinion regarding this issue, they are not legally bound to the student decision and, therefore, if the University were to participate in a future contract, the MSU would not be able to participate, and would be deprived of any accompanying shares and benefits.
Furthermore, Queen’s University is currently continuing a two-year extension of a 10-year exclusive contract with Coca Cola that ends in 2012. Due to this contract, Coca Cola has provided the Queen’s with $5.8 million in revenue.
Coca Cola has also sought to defend itself against human rights and business ethics allegations, explaining that all products that are delivered to McMaster University are produced and manufactured in Ontario.
Trull estimated that since the recent end of the Coca Cola contract, 94 per cent of cold beverages on campus remain Coca Cola products.

Against Coca-Cola:
Since the Coca Cola referendum has been pushed fourth in March 2009, the official opposition to getting an exclusive contract with Coca Cola has been the McMaster Campus Choice, a service provided on campus to “raise awareness and critically examine the exclusive contracts between the University and corporations that engage in unethical business practices.”
One of the reasons provided against the exclusive deal with Coca Cola is that the $10-million offered to the University when they agreed to the last 10-year exclusive deal with Coca Cola is not a likely possibility given the current economic situation. Vishal Tiwari, MSU president explained, “Coca Cola doesn’t offer as much in terms of those types of deals anymore; the market has changed. Before the deal was a little more profitable for the University… but now the deal that came along with that exclusivity are not the same anymore… In terms of the grand scheme of things it’s not that large of a party to pursue a contract [with] because it doesn’t provide as much return as it used to.”
A major excuse against voting for the MSU’s ability to pursue an exclusive deal with Coca Cola is the plethora of allegations that Coca Cola corporations practice unethical global business practices. Several examples include the depletion of ground water in areas in India that frequently suffer droughts by Coca Cola bottling plants. Another major example of Coca Cola’s unethical actions is the violent actions against union negotiators by the paramilitary in Colombia who are allegedly hired by Coca Cola corporations. Furthermore, a Human Rights Watch report in 2004 reported that Coca Cola’s sugar supplier in El Salvador was using child labour.
Natalie MacDonnell and Sidarth Murjani, two of the 10 active members of McMaster Campus Choice, firmly explained that their cause is not to remove Coca Cola products from campus, but to raise awareness on their unethical practices and hopefully motivate change. “We’re not interested in getting rid of Coca Cola, just not making profit at the expense of human rights or environmental rights,” elaborated Murjani.

What is the purpose of the upcoming Coca-Cola referendum? To ask McMaster University students whether the McMaster Student Union should have the ability to engage in any exclusive contracts with Coca-Cola.

What will be the question on the ballot? “Should the MSU be able to negotiate and/ or enter into an exclusive contract with Coca-Cola?”

What should we expect if the majority of students vote ‘Yes’? That the MSU is able to participate in any exclusive Coca-Cola contracts.

What should we expect if the majority of students vote ‘No’? That the MSU will not participate in any potential Coca-Cola exclusive contracts that the University may choose to participate in.

How can I vote? On Feb. 3 and Feb. 4, McMaster University students will be presented with two separate papers at the polling tables, one to vote for the MSU presidential elections, and one to vote for the Coca-Cola referendum. Students can choose to decline either.

What drinks on campus are not Coca-Cola products? Calypso Lemonades, Aloe beverages, Jones Soda and any yogurt and milk products.

Compiled by Selma Al-Samarrai

Tags: Coca-cola, exclusive deal, referendum