Stirling Observer

Drinks giant’s offer rejected

Furious workers KO Diageo pay deal

- Alastair McNeill

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.”

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