MP supports GMB in Diageo pensions row

Trade union GMB Scotland has hailed the “timely” support Glasgow South West MP Chris Stephens has shown for its ongoing campaign against Diageo’s proposed pension cuts.

GMB Scotland has hailed the “timely” support of Glasgow South West MP Chris Stephens

As an industrial action ballot of more than 1,500 members employed by Diageo reaches its final week, Stephens has tabled an Early Day Motion (EDM) calling on the drinks giant’s executives to reverse plans to close the company’s final salary scheme and ‘lifestyle’ plan to new entrants.

The EDM comes less than 24 hours after the UK prime minister, Theresa May, spoke of a “new global elite who sometimes seem to play by a different set of rules” when it comes to jobs and pay in a major foreign policy speech at the annual Lord Mayor’s Banquet in London.

Diageo recently increased its operating profits to £2.8 billion and awarded CEO Ivan Menezes a 12% pay increase, taking his maximum earnings to £8.8 million.

“Diageo is happy to significantly increase CEO pay in the wake of billions of pounds of profit but they won’t protect the workers’ pensions who have contributed massively towards the success of the business,” said GMB Scotland organiser, Louise Gilmour.

“The prime minster warned of the ‘tensions and differences’ between those gaining from globalisation and those losing out and of the new elite ‘playing by a different set of rules’ – she could have been talking about Diageo.

“That’s why the intervention of Chris Stephens is timely and welcome because his EDM highlights yet again the gross disparity between CEO remuneration and that of the ordinary worker.

“So Ivan Menezes would do well to heed the Prime Minister’s words. He should be telling his executives to look at what’s going on in the world, get back to the negotiating table immediately and put forward a fair offer that would swiftly resolve this dispute.”

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 chose 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.

A spokesperson from Diageo stated: “We are happy to engage with any stakeholders. We also remain committed to engaging with our people and their representatives and to returning to the consultation process we have been engaged in for the past nine months.

“The pension review is about finding a long-term sustainable solution on pensions which manages risk and costs.”

Earlier this month, Central Scotland MSP Richard Leonard offered his support to the union’s campaign.