Drinks giant’s offer rejected
Furious workers KO Diageo pay deal
Diageo workers last week rejected a below-inflation pay offer prior to the drink manufacturing giant’s annual general meeting on Friday.
The conglomerate, whose whisky brands include Johnnie Walker, J&B, White Horse, Lagavulin, Dalwhinnie and Cragganmore, has a big presence in Clackmannanshire with a large warehousing site at Blackgrange, a cooperage at Cambus, coppersmiths Abercrombie in Alloa and its global brand archive in Menstrie.
Work also started earlier this year on a £6.4million state-of-the-art centre for spirits in Menstrie.
Following a consultative ballot, 81 per cent of GMB members voted against the offer of a three per cent pay increase, as the Retail Price Index (RPI) rose to 3.5 per cent in August.
The rejection also follows Diageo posting operating profits of £3.7 billion.
Shareholders at the agm were due to vote on whether to award chief executive Ivan Menezes a 266 per cent increase to his overall pay and conditions.
GMB is now calling on Diageo to table a fresh offer that beats the cost of living for its Scottish-based employees.
Scotland organiser Keir Greenaway said: “As shareholders gather to toast Diageo’s strong and stable performance, their employees across Scotland have sent the company hierarchy a clear rejection of its terms pay cut offer.
“It should be a source of embarrassment to Diageo that on the same day shareholders will vote to award Ivan Menezes a monstrous increase to his pay and conditions, their employees in Scotland are still holding out for a pay deal that tackles the cost of living.
“Diageo can more than afford to ensure the pay of their employees covers the household bills and everyday essentials and we are asking them now to listen to our members and return to the negotiating table with an improved offer.
“Our members are pivotal to the ever-improving performance of Diageo, working across bottling operations, distilleries and maturation warehouses, and they more than deserve their fair share of the billions.”
Diageo say that the consumer price index (CPI) –which does not include rises in mortgage payments, rents and council tax – is now regarded as the UK’s official rate of inflation and currently stands at 2.7 per cent.
A spokesman said: “The company’s offer was equivalent to a 3.2 per cent pay increase.
“The CPI – regarded as the UK’s rate of inflation is currently 2.7 per cent. We have arranged to meet with representatives to discuss matters further.”