Diageo urged to safeguard jobs during restructure

Workers union Unite has urged Diageo to stop chasing “tasty” profits and safeguard hundreds of UK and Ireland jobs when it restructures the global business.

Diageo announced the £100m plans to restructure its global supply chain yesterday, a move which it claims could eventually save the group up to £60m a year.

However Unite has hit out at the British drinks group, urging Diageo not to make any staffing cutbacks in the UK.

“Scottish workers have already paid a very heavy price for Diaego’s profits,” said Jennie Formby, Unite national officer for food and drink. “In 2011, we saw the historic home of Johnnie Walker in Kilmarnock shut and hundreds of Scottish jobs go.

“There must be no repeat of what has gone before where our members at UK or Irish plants pay for increased profits and tasty dividends for the board and shareholders with their jobs and pay.”

Diageo, the world’s largest producer of spirits, currently employs around 27,000 people. Last year the group reported a profit increase of 32% to £3.1 billion.

“This company must conduct itself in a more socially responsible way, beginning with stating clearly that it will secure the jobs of those who have grown this company to international success,” Formby added.

As a result of “increasing presence in faster growing markets”, Diageo’s restructure plans include a refocus on its global supply and procurement chain to allow a seamless alignment throughout its 21 key markets.

Diageo’s Kilmarnock plant, the home of Johnnie Walker blended whisky for almost 200 years, was closed down in March 2012 with the loss of 700 jobs. Around 200 employees found work elsewhere within Diageo while 430 agreed to severance pay and 82 people were made redundant.