Coors strike and boycott impact explained

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Credit: pexels.com, Crowd of people with placards and banners on demonstration

The Coors strike and boycott had a significant impact on the company and its employees. In 1977, a labor dispute led to a strike by Coors brewery workers, who were seeking better wages and working conditions.

The strike lasted for several weeks, during which time the company refused to negotiate with the union. This led to a boycott of Coors products by many consumers, including some major retailers.

The boycott was organized by the United Food and Commercial Workers (UFCW) union, which represented the striking workers. The union argued that Coors was unfairly treating its employees and that the boycott was necessary to bring attention to the issue.

As a result of the strike and boycott, Coors sales declined significantly, with some estimates suggesting a loss of up to 20% in market share.

Labor and Strike

The Coors Brewing Company has a complex history with organized labor. Its relationship with unions began in the 1930s when Adolph Coors II invited a labor union to organize at the brewery.

Credit: youtube.com, The Coors Boycott

The company's relationship with labor turned sour in the following decades, with the AFL–CIO claiming that Coors destroyed 19 different unions at their facilities. These unions represented various groups, including boilermakers, electricians, and ironworkers.

Coors was notable for not pasteurizing its beer, which meant it had to be constantly refrigerated to prevent spoilage. This process was unique among US breweries at the time.

The company's limited market area, selling only in 11 western states, led to significant bootlegging of its product to the eastern United States.

Boycott

The boycott against Coors was a long and complex issue that involved multiple groups and organizations. The company's use of polygraph tests on job applicants, which began after the 1960 kidnapping and murder of Adolph Coors III, was a significant point of contention.

The tests covered topics such as marijuana use, personal debts, and political affiliations, including questions about "subversive, revolutionary or communist activities." This led critics to allege that the company used the information to prevent people from being hired based on their politics or sexuality.

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Credit: youtube.com, Coors Boycott

In 1973, the boycott expanded to include the LGBT community, who had become aware of Coors' homophobic practices. The company denied using the polygraph test results to discriminate against applicants.

The boycott gained momentum when president Allan Baird of Teamsters Local 921, along with activist Howard Wallace, organized a large-scale boycott in the Bay Area. Gay rights activist Scott Smith brought the issue to the attention of Harvey Milk, who helped coordinate the boycott and strengthen the alliance between the Teamsters union and the gay community.

The boycott also drew support from the American GI Forum and the California-based Mexican American Political Association, who announced they were ending their boycott in 1979 due to "some improvement" from the company. However, the AFL–CIO continued their nationwide boycott.

In the 1980s, the boycott continued to expand, with the National Education Association voting to support the boycott in 1984. The National Organization for Women also launched a boycott due to Joseph Coors' opposition to the Equal Rights Amendment.

Coors began reaching out to groups that had threatened to boycott, signing agreements with the NAACP and Operation PUSH in 1987. The company also ended their use of polygraph testing in 1986, replacing it with a screening process that involved a partnership with Equifax.

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Glowing Coors Light neon sign illuminating the night in Miami Beach, Florida.
Credit: pexels.com, Glowing Coors Light neon sign illuminating the night in Miami Beach, Florida.

As a result of the agreements, the NAACP ended their threats to boycott Coors. However, the South Dakota Farmers Union announced they would be boycotting Coors in 1986 due to advertisements that cast aspersions on local barley farmers.

The boycott continued to affect Coors, with students at the University of Massachusetts Amherst voting to ban the beer from the college. The company expanded its market to include 47 states by 1987, but remained the only brewery among the top 15 in the nation that was not unionized.

Joan Corwin

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Joan Corwin is a seasoned writer with a passion for covering the intricacies of finance and entrepreneurship. With a keen eye for detail and a knack for storytelling, she has established herself as a trusted voice in the world of business journalism. Her articles have been featured in various publications, providing insightful analysis on topics such as angel investing, equity securities, and corporate finance.

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