UK: Scottish minister to meet Diageo over job cuts

Scotland's first minister, Alex Salmond, was due to meet with Diageo's senior management today (2 July) after the drinks giant announced plans to shed more than 10% of its workforce in the country.

Salmond, head of the ruling Scottish National Party (SNP), will express ministers' concerns at the cuts, according to SNP finance secretary John Swinney.

Diageo's decision to cut 900 jobs from a Scottish workforce of 4,500 drew criticism from across the political spectrum yesterday (1 July) as members of the Scottish Parliament fretted over the impact on their constituencies.

"The Scottish Government is asking the company to reconsider this course of action and to look at alternatives which protect employment," said Swinney.

First minister Salmond will meet senior executives to "make exactly that point", he added.

Although around 900 jobs are to be cut, Diageo said yesterday that it plans to create 400 new jobs at its new packaging site near Fife.

Diageo said the restructure, which will cost GBP100m (US$164.4m) and include the closure of packaging operations in Kilmarnock and the Port Dundas distillery in Glasgow, follow "a major review looking at how Diageo can best ensure the long-term sustainability of its operations in Scotland in the current economic conditions".

Bryan Donaghey, managing director of Diageo Scotland, said: "I am sorry for the impact this announcement will have on our employees and their families in Kilmarnock and Glasgow."