Make Diageo think again over closures decision, workers appeal to
shareholders
14th October 2009
Workers representing the 900 Diageo staff whose jobs hang in the
balance with the threat of widespread cuts and the closure of the
historic Johnnie Walker plant at Kilmarnock and the Port Dundas
Distillery will be outside the company's AGM today (Wednesday)
fighting for their jobs.
Warning that industrial action to oppose the cuts is a growing
possibility, the workers want the shareholders to force discussion
of the alternative proposals submitted to the board by the workers
and their union, Unite.
The workers have journeyed from Scotland for the meeting which
is set to contrast yet another year of enormous profits for Diageo
with the certain devastation the company's restructuring plans will
bring to their communities.
In particular, there is deep concern for the Kilmarnock plant,
the home of Johnnie Walker for 180 years, which will close under
Diageo's plans. The plant is among the last major employers
in the Scottish town, and counts generations of the same families,
friends and neighbours among its workforce.
Diageo workers, themselves shareholders, believe that the
management has hidden the board from any consideration of
alternatives to their savage plans. The trade unions'
alternative plan could save Diageo and its shareholders some £80
million, avert the need for closures and job cuts on the widespread
scale envisaged, and put a stop to the reputational damage Diageo
is suffering as the campaign to halt the cuts builds momentum in
the UK and overseas. However, the company's management has
dismissed the proposals out of hand.
Among the changes proposed by the workers are:
- At Kilmarnock, a saving of £84 million on the cost of building
a new facility plus saving £36 million needed to close the
plant. Labour costs savings of £8 million per annum could
also be saved, in addition to the further assistance which could be
levered in through support from Scottish Enterprise and local
authorities
- Safeguarding the Scotch whisky distillery plant in Port Dundas,
Glasgow, to ensure whisky continues to be distilled by Scottish
Diageo workers, and at the same time help meet short-term capacity
needs. Up to £5 million savings per year could also be made
by lowering labour costs and through cost savings.
According to Unite, the trade union proposals would deliver
flexibility and more efficient working, in contrast to the
management proposals which are based on an incomplete financial
analysis and will create a risky three year gap between capacity
and demand, which is set to grow despite the recession.
Contacting them ahead of the meeting in a letter to fellow
shareholders, the workers state: "Diageo’s proposals to axe 900
jobs across Scotland will destroy communities and ditch over a
century of proud heritage for the Johnnie Walker brand in Scotland.
The moves have been described as akin to the company ripping the
heart out of the Scottish whisky industry. Diageo workers are
determined to fight these plans, believing there is a more humane
alternative, one which also makes sound business sense.
"We know that Diageo's shareholders want a strong and thriving
business. So do we, because strong businesses mean good jobs. But
as shareholders, we think you also want one which can hold its head
up high in the towns and the communities that have made you such
good returns.
"This is a loyal workforce, one which includes generations of
the same family. Their hard work helped make this company a global
success story, one which pocketed a healthy £2 billion profit this
year. Only this year the workforce agreed pay restraint in
exchange for job security, to unpaid time off and to short-time
working to protect those massive profits. Please do not repay
this loyalty by slashing 900 jobs.
"The trade union business plan proves that Diageo can still
increase efficiency and profitability in Scotland without closures
and job losses. We believe that you need to know the details of
that plan, which provides significant savings both in capital
investment and annual costs, so that you can judge for
yourselves."
The workers go on to say that Diageo's plans: "have prompted
widespread opposition from local communities and across the globe
with a serious risk to the brand. In July, 20,000 people called for
Diageo to think again as they marched through Kilmarnock. Since
then, over half a million supporters have joined the campaign and
it is growing every day. Poor public opinion of Diageo poses a
serious risk to brand integrity and future profits. For every day
this campaign continues, Diageo's reputation in Scotland and abroad
is hit."
Outside today's AGM, Diageo workers and their union reps will be
leafleting shareholders as they go into the meeting from
1.30pm–2.30pm at the Institution of Engineering and Technology, 2
Savoy Place, London WC2R 0BL. The workers will be carrying with
them a huge "Message in a Bottle" which contains just some of the
messages of support sent to them as they fight to save their
jobs.
ENDS
For further information, please contact Pauline Doyle on 07976
832 881 or Karen Viquerat on 07768 931 316
Email to a friend
