The Courier & Advertiser (Perth and Perthshire Edition)
Diageo staff vote to strike over pension scheme cuts
DISPUTE: Fife workers angered by proposals to slash retirement benefits
Workers at Diageo’s massive bottling plant in Fife will walk out on strike in the run-up to Christmas, it has been confirmed.
Union members have voted overwhelmingly for industrial action over “Scrooge” proposals to slash their pensions at a time when they say the company is making massive profits.
The drinks giant said it was disappointed at the result of the ballot but stated it had plans in place to ensure business continues as usual “as far as possible”.
Diageo, whose brands include Johnnie Walker, Bells, Smirnoff and Guinness, employs hundreds of people at its £86 million premises in Leven.
It also owns Cameronbridge Distillery in Windygates.
Members of the GMB and Unite unions were balloted over plans to change the company’s pensions scheme to one which is worth far less to members.
A separate scheme is being closed to workers and, together, the plans will save the company £30m.
The firm’s 2015 profits were £2.8bn and chief executive Ivan Menezes was given a 12% pay rise, taking his maximum earnings to £3.8m.
Unite regional officer Pat McIlvogue said: “We are proud of our members who have sent a clear message to Diageo that they must keep their pensions promises.
“No-one takes industrial action lightly, especially with Christmas coming up, but Diageo is behaving like Scrooge.”
GMB Scotland organiser Louise Gilmour said members had sent a strong message to Diageo that the company needs to think again.
“Diageo is happy to significantly increase executive pay in the wake of billions of pounds of profit but they won’t protect the pensions of the workforce who have contributed massively towards the success of the business.”
A spokesman for Diageo said the company had been consulting with employees on a review of the final salary pension scheme since February.
He said discussions had been continuing and added: “This is clearly disappointing and, the company feels, premature whilst we were in ongoing discussions.”
Stating that the company would seek to move back into talks with the unions, he said: “Management at Diageo remain committed to finding a sustainable solution on pensions that helps to manage the long term needs of employees in a competitive pension with the growing risk and cost to the company of the DPS (final salary) scheme.”