UK: Diageo begins redundancy scheme in Scotland

Diageo has begun a voluntary redundancy scheme across Scotland to create vacancies for staff set to lose their jobs as part of the group's restructure in the country.

Up to 900 jobs are set to be cut in the restructure, which will see Diageo close its Johhnie Walker Scotch whisky bottling plant in Kilmarnock and its Port Dundas distillery near Glasgow.

While 400 news jobs will be created at a new bottling plant in Fife, Diageo is seeking to relocate as many staff from Kilmarnock and Port Dundas as possible.

As part of a deal with trade unions, the drinks giant is offering voluntary redundancy Scotland-wide, in order to free up posts that could be reallocated to staff willing to move from Kilmarnock and Port Dundas. 

"For example, an operator in Kilmarnock may express a preference to move to another site in Scotland," a Diageo spokesperson told just-drinks today (18 February).

"We are only in the very, very early stages," she said, adding that the plants are not scheduled to close until May 2012.

Diageo, which employs 4,500 people in Scotland, confirmed in September last year that it would press ahead with its restructuring plans, despite opposition from the Scottish Government and unions.

Around GBP9,000 (US$14,093) per person will be paid to workers who have their contracts terminated, as part of a subsequent agreement with unions.

Last week, Diageo reported falls in profits and sales for its fiscal half-year.