Diageo’s majority union signs pension deal

Members of Diageo’s majority trade union GMB Scotland have signed a pension deal after voting in favour of strike action over proposed cuts last month.

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Diageo has agreed a “highly competitive final proposal” at ACAS, negotiated with the GMB and Unite Trade Unions, after it was threatened by strike action in the run up to Christmas.

The GMB trade union membership has accepted the company proposal, while fellow trade union Unite – the smaller of the two unions – has rejected the proposal and are yet to confirm their position.

A spokesperson from Diageo said: “We will seek to engage in discussions with the GMB trade union and other employee representative forums to move forward on the proposal.

“In the event of industrial action, we have strong business continuity plans in place and for now it is very much business as usual.”

In November, 63% of Diageo workers who are members of trade union GMB Scotland voted in favour of strike action, while 69.7% voted in favour of “action short of strikes”.

At trade union Unite, 77% of members voted in favour of strike action and 82% voted in favour of industrial action.

Diageo has been consulting with employees and their unions since February this year as part of a review of its pension scheme, starting formal consultations on proposed changes in July.

The group made a decision to end its final salary pension scheme, which it claimed was an escalating cost for a small part of the overall workforce whose life expectancy was collectively increasing.

The scheme closed to new members on 22 September 2005, but about 1,700 employees are currently covered by the plan. As such, up to one third of Diageo’s workforce would be affected by the changes.

“We are proud of the pay and benefits we offer our colleagues and are committed to providing competitive and sustainable pensions,” Diageo’s spokesperson added.

“In the last decade we have invested an additional £1.1 billion into the final salary scheme over and above our normal employer contributions. With the costs of this scheme escalating, it is simply no longer sustainable.”