PepsiCo: labor reform drives efficiency

Company-level bargaining under the labor reform allowed this company to improve productivity and reduce absenteeism.

One of the key aspects of the labor reform currently limited by court decisions—and most anticipated by companies—is the ability to negotiate salaries and working conditions at the company level, without being tied to industry unions. In this context, PepsiCo presents a case study anticipating the implementation of the law.

Jonathan Dymant, Regional Legal Director at PepsiCo, outlines the company’s “modernization and operational transformation” process in Argentina, which anticipated the use of labor reform mechanisms such as company-level bargaining, achieving increased operational efficiency and a significant reduction in absenteeism.

During his presentation at Marval’s annual Human Resources event, Dymant stated that “the reform creates positive expectations in labor relations and collective bargaining,” particularly given the historical lack of legal certainty in the country.

The case study shows how operational inefficiencies were addressed through structural changes, improved workforce management, and the introduction of more flexible work models.

The results included a 6% increase in operational efficiency, a reduction in absenteeism from 18% to 3%, and significant improvements in employee engagement.

Dymant concluded that this approach aligns with the objectives of the Labor Modernization Law, providing a legal framework for policies that were previously difficult to implement.