Diageo staff in Scotland may strike over ‘paltry’ pay increase

SCOTTISH Diageo workers could be set for strike action after they rejected an “insulting” pay offer from the spirits giant.

Workers for the Johnnie Walker maker overwhelmingly rejected an offer to increase pay by 2.5%, with 95% of staff dismissing the deal.

Union Unite said yesterday that it will move to ballot its members at Diageo for strike action after the “derisory” pay offer.

Staff frustrations come at a time when Diageo is ploughing large funds into a flagship Johnnie Walker visitor attraction in Edinburgh as part of a £150m investment in Scottish Whisky tourism.

The spirits group, which also makes Smirnoff, Gordon’s and Guinness, has seen its share price rise by more than 20% since the start of the year on the back of strong sales.

In January it said that operating profits for the six months to December 2018 had risen to £2.4bn, up 11%.

The union said that workers deemed the pay offer as “paltry”, given improvements in sales and profitability.

Bob McGregor, Unite regional industrial officer, said: “This offer is not only insulting, it’s disgusting given the profits made off the backs of hard working Unite members, who deserve a fairer share of the profits they generate for this hugely successful company.”

Separate negotiations over pay increases have taken place with staff at its sites in England and Ireland.

A Diageo spokeswoman said the offer was “equal to an increase of 2.8% on overall benefit and pay packages”, adding, “This offer is made in the context of maintaining a strong reward package” and remaining competitive.