Diageo workers to go on strike as pay talks break down

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Workers at Diageo’s distilleries will go on strike from Tuesday night after last-minute pay talks broke down.

Unions criticised the company’s “insatiable corporate greed” for refusing to increase their pay offer above the 2.8% basic rise for workers across Scotland’s distilleries and bottling plants.

“Barring a last-ditch offer”, almost two-thirds of all Diageo workers will take part in a series of rolling strikes over 10 days, starting from 10pm on Tuesday, according to representatives of the GMB and Unite unions.

Scotch whisky
A member of staff looking at the Diageo Claive Vidiz Scotch whisky collection (David Cheskin/PA)

Diageo, which owns Johnnie Walker whisky, Smirnoff vodka and Tanqueray gin, said it has “strong contingency plans in place” to deal with the strikes, which would affect all of the firm’s sites across Scotland.

The drinks giant made £4.2 billion in pre-tax profits, with union representatives saying “performances have improved by every indicator” but the company has claimed it cannot afford to match last year’s 3.2% pay increase.

The GMB said increasing the offer to match the cost-of-living increase would be equivalent to the price of a tank and a half of the company’s Tanqueray gin, or just 4% of Diageo chief executive Ivan Menezes’ annual pay.

A GMB spokesman said: “Diageo say they can’t afford to increase the pay offer, even though profits have increased, and wouldn’t even match the 3.2% increase last year, despite improvements in performance by every single indicator.

“It’s insatiable corporate greed and to claim that they can’t afford to improve their offer is just not credible.”

Unite regional industrial officer Bob MacGregor accused Diageo negotiators of wasting the opportunity to avoid industrial action, claiming they “deliberately chose to use this last opportunity ahead of strike action to waste time and indulge themselves in a charade”.

Mr MacGregor added: “In the latest round of talks between Diageo and the joint trade unions today, absolutely zero progress was made.

“Diageo is a giant of the drinks industry, which is making billions in profits and paying its CEO Ivan Evans an annual remuneration package of £11.7 million, yet it treats its workers who make these profits with such contempt.

“We are always willing to talk with the company but this must be on the basis of respecting and properly rewarding the workforce with an improved offer.”

Following Monday’s failed negotiations, lasting more than seven hours, a Diageo spokesman said: “Our objective today was to finalise an agreement through meaningful talks with the union groups.

“Unfortunately, at the meeting the unions increased the gap between our respective positions and chose to suspend discussions.

“Despite this, we remain willing to continue talks to reach a positive resolution for all.

“Should these talks fail, we have strong contingency plans in place to manage the planned strike action over the coming days and remain available at any time to meet for further talks.”

Unless averted, strike action will take place at Diageo’s Cameron Bridge, Leven and Shieldhall plants at various times until September 27.

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