Diageo workers' courageous fight wins them a better deal

10th December 2009

A much-improved and unconditional offer from Diageo has been accepted by its Scottish workforce, Unite the union said today (Thursday).

The union and the workers had been fighting for a fairer redundancy deal to compensate the hundreds of workers set to lose their jobs with the distillers as it forces through its restructuring plans next year.

After months of campaigning, and amid the threat of industrial action by the workers to hit the company early in 2010, Diageo agreed to increase the termination payments by £4,000 to £9,000 per person, and remove altogether its previous conditions that the payment would be based on productivity and attendance.

Diageo has also opened up the pension scheme to allow part of the packages to be paid in to workers' pension pots, enhancing both the retirement lump sum and the pension.

Workers voted on the proposals in workplace ballots at the Kilmarnock, Shieldhall and Port Dundas plants. The offer was accepted by almost four to one.

Jennie Formby, Unite national officer for the food and drinks sector, said that there was widespread sadness that Diageo would not listen to reason on its plant closures, but that the workers deserved every credit for the fight for fairness: "The final package is one that provides benefits for members that are second to none. But we firmly believe that without the courage and determination of the workers, and the excellent leadership of their union stewards, we would not have seen any movement from the company.

“The fighting spirit the workers demonstrated throughout the whole campaign let Diageo know that it simply could not walk away from these communities without fair and proper compensation.

"Every site had a very clear majority to accept, with Kilmarnock as the largest site showing an 80 per cent acceptance, which is a very clear endorsement of the proposals.

"Of course we are very disappointed not to have been able to save sites from closure, but this is a painful reminder that it is only too easy in the UK for companies to close sites in this way. We have advised Diageo management of the result and also confirmed that our campaign is now formally at an end."

ENDS

Notes:

Following the recent ballots at all impacted sites, the revised offer from the company on packages and pensions has been overwhelmingly accepted on all sites, with the total votes as follows:

In favour of revised offer 568 – 76 per cent of total; Against revised offer 175 - 24 per cent of total.


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