Labor unions at Coca-Cola FEMSA Philippines, Inc. (CCFPI) have labeled the franchise bottler’s use of a new tax law as a “façade for union busting” following the management’s decision to lay off over 600 workers.

On Friday, the bottler’s labor unions issued a statement saying 23 of the 606 who will lose their jobs on March 2 are union leaders — four of them are union presidents.

The softdrinks bottler had seen several ownership changes in the past decade – the latest was in 2013, when Mexican beverage giant FEMSA S.A.B. de C.V. acquired 51% of Coca-Cola Bottlers Philippines, Inc. from Atlanta-based The Coca-Cola Company.

Coca-Cola FEMSA Philippines said last week that it “is undergoing an organizational structure assessment” that will entail cutting its headcount because of “recent developments within the beverage industry and the business landscape as a whole.”

It did not say at that time how massive the layoff will be, or specified at all what those “developments” are.

But in a statement on Friday, the company’s labor unions – which announced they’re forming a coalition – claimed that the Coca-Cola bottler’s management had told them that the “restructuring” was a consequence of a new tax on sweetened drinks.

The Duterte government’s centerpiece tax law “Tax Reform for Acceleration and Inclusion” (TRAIN) imposes among others a P12 per liter tax on drinks using high fructose corn syrup like softdrinks, and a P6 per liter tax on those with caloric and non-caloric sweeteners.

“The CCFPI management uses the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) as a façade for their union busting despite having no evidence yet of the decline in sales due to the excise tax on sugary and sweet beverages,” the unions’ statement read.

“CCFPI can never conceal the stench of union busting by hiding under the skirt of the TRAIN law.”

The labor unions said they were “cast out of the decision-making regarding the retrenchment of our co-workers,” and that the management made no mention of the plan during two meetings held in November and December last year.

“The CCFPI only informed us of its plans last January 29 and 30 as it was issuing termination papers to the affected workers.”

They said the restructuring and lay-off are violations of an agreement between the company and unions.

Alfredo Marañon, president of the Federation and Cooperation of Cola, Beverage and Allied Industry Unions, said union members will hold protests at Coca-Cola sites across the country on Feb. 20 demanding negotiation.

Sought for comment, Coca-Cola FEMSA said the company has adhered to legally mandated processes in the restructuring process.

“This restructuring has been a very difficult decision. We have the utmost respect for our employees, and we have strived for fairness in executing every facet of our reorganization. Rest assured that KOF PH strictly adhered to all legally mandated processes in restructuring the company. The methodology and criteria that informed our decision were applied fairly and equitably as we implemented the comprehensive review of our organization,” the company said in a statement.

KOF is the ticker symbol for Coca-Cola Femsa S.A.B. de C.V. that’s listed on the New York Stock Exchange.

“We have taken note of all the points raised by the KOFPH Unions, and are working to address these as we speak. We are hopeful that our present labor-related issues will be resolved fairly, peacefully, and in accordance with law.” – report from P. P. C. Marcelo

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