Drinks giant remains ‘open to talks’ over Scots workers’ pay dispute

Diageo’s John Kennedy said the whisky-maker was still “open to talks” in a pay dispute affecting its Scottish workforce.

And he insisted the company was “a good employer in Scotland” – highlighting wages in the upper quartile for the industry and also a high degree of share ownership among employees, with more than 80% of them investing in a stake in the business.

Pay talks with Unite the Union and GMB Scotland – mediated through the Advisory, Conciliation and Arbitration Service – have collapsed, paving the way for a ballot on strike action among about 1,500 people working for Diageo north of the border.

Unite has called Diageo’s initial offer of a 2.5% pay rise “derisory” and an improved proposal of 2.8% an “insignificant” change.

The announcement of a £4.2 billion profits haul at the firm, as well as an 8% year-on-year increase in marketing spend to more than £2bn, inflamed the row.

Unite regional industrial officer Bob McGregor said: “Diageo’s announcement of an increase in pre-tax profits to £4.2bn in the last year has been built on the hard work of its workforce.

“The company seems more than happy to increase its marketing budget by 8% but refuses to give its workforce an increase anywhere close to that figure.

“This is a shameful position. It is only right that the workers benefit from the success and Diageo can easily avoid industrial action by making our members a fair offer.”

Diageo revealed yesterday its board had approved plans for a further return of capital worth up to £4.5bn for shareholders.

The London-based company returned £2.8bn to shareholders via share buy-backs during its 201819 trading year.

The final dividend increased by 5%, bringing the full-year pay out to 68.57p per share.