Evolution CEO blasts "disinformation and blunt lies" surrounding Georgia staff strike
Supplier’s chief addresses strike action from Georgia-based employees as well as its impact on Evolution’s reputation in the eyes of regulators
Evolution CEO Martin Carlesund has issued a scathing assessment of the coverage surrounding the staff strikes in the supplier’s Georgia-based office.
In mid-July, the company saw a significant number of employees walk out over alleged unsafe and unsanitary working conditions, as well as harassment and inadequate pay.
Weeks later, a solidarity demonstration took place outside Evolution’s Georgia facilities, which according to reports, turned violent and saw clashes between employees and company security.
The controversy, which comes after two-and-a-half years of negotiations between staff and Evolution bosses, was believed to have involved around 550 striking workers, though when strike action was first posed, it was thought as many as up to 5,000 employees might take part.
Speaking on an analyst call following company’s Q3 earnings release, Carlesund passionately defended the workplace culture implemented at Evolution and blasted “unreasonable” union demands, before taking aim at the media’s coverage of the situation.
“There’s been a lot of disinformation and blunt lies spread by the union in the media, and one of many examples is the strike participation. On average, over the [strike] period, there has been around 550 participants, and currently it’s around 300 participants out of 7,500 to 8,000 employees and nothing else.”
Carlesund also quashed speculation the strikes have impacted Evolution’s relationship with relevant authorities, shedding light on a recent meeting with regulators in the process.
Asked if the strikes would have dented Evolution’s reputation, the CEO replied: “I was travelling recently and met regulators, I think that they see through the social media and the situation with the unions and how they communicate.
“I do not see an effect in any of the regulatory aspects, I think the regulators base their judgements on facts rather than social media, so we work on that.”
The situation in Georgia has also meant Evolution has had to operate its live tables at the Tbilisi hub at a reduced capacity of 60%, which has led to lower value tables being removed, a decision taken by bosses to “maximise the output of the tables that we have”.
The CEO admitted the situation is “naturally not positive” and the impact on customers “when unions illegally block and make thousands of people unable to go to work is negative”.
He went on to outline plans that make clear Evolution views the situation in Georgia as too “unstable” to return to 100% capacity, but was defiant and optimistic as he vowed the supplier is not “standing and looking at the sunset”, insisting the company is committed to overcoming the challenges presented by the strike controversy.
“We are actually doing something and wake up in the morning and get things out of the door,” Carlesund said. “You can see that when we have these challenges, we do things and make it work.”
Despite the ongoing uncertainty surrounding its Georgian operations, it was a largely positive Q3 performance from Evolution, one that saw the firm post a total revenue rise of 27.9% year on year (YoY) to €579m (£481.8m).
Adjusted EBITDA and profit followed the same upwards trajectory, rising 11.6% YoY and up €55.8m, respectively, when compared to the corresponding period last year.