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Up to 1,700 staff affected by Diageo pension cuts

Diageo has confirmed that up to one third of its UK workforce could be affected by changes to its final salary pension scheme.

Diageo has been removed from the Forum of Private Business's 'Hall of Shame'
Diageo has stressed that no decisions have been with regards to its proposed pension cuts

The Johnnie Walker maker has been consulting with employees and their representatives since February 2016 as part of a review of its pension scheme and started formal consultations on proposed changes on 18 July.

Diageo’s UK final salary pension scheme closed to new members on 22 September 2005, but about 1,700 employees are currently covered by the plan.

The group decided to end the scheme as it was perceived as an escalating cost for a small part of the overall workforce whose life expectancy was collectively increasing.

According to The Press & Journal, GMB branded the proposed changes “shameful”, but union representatives have not yet responded to The Spirits Business’s request for comment.

However, Diageo has stressed that “many options” are open to employees who are set to be affected.

“At this point no decisions have been made and we will continue to discuss the options with employees and their representatives,” a Diageo spokesperson said.

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