Hundreds of jobs have been put at risk of redundancy across Diageo’s distilleries in the Scottish Highlands and Islands, according to a local union.
In a statement today (3 August), GMB Scotland said the Laphroaig brand owner had put 172 distillery staff at risk of redundancy, “and warned 38 could lose their job as part of a huge global redundancy programme”.
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Following the redundancy process, Diageo intends to cut 38 jobs, the union clarified to Just Drinks.
In its statement, the union accused the spirits giant “of rejecting alternatives to compulsory redundancies and ignoring the risk to rural communities across the Highland and Islands”.
A four-week consultation process ended last week, the union said.
GMB claimed that “there was no serious attempt to engage with workers and no agreement has been reached on the number of potential job losses or the redundancy process”.
A Diageo spokesperson said: “In February, at our interim results, we shared our intention to redesign our operating framework, to drive sustainable returns for shareholders by delivering a more competitive Diageo.
“In the UK, we are still in consultation on this and no decisions have been made. We will always prioritise informing our colleagues of any organisational changes first and have committed to update shareholders on our progress at a Capital Markets Day on 6 August.”
Diageo will announce its annual financial results the same day as its Capital Markets Day, this Thursday (6 August).
According to the union GMB, the jobs that have been put at risk sit across Diageo’s distilleries such as Cardhu, Port Ellen and Dufftown.
Lesley-Anne Macaskill, GMB Scotland organiser in the Highlands and Islands, said: “We have now had five meetings with the company to discuss its plans but there has been no serious attempt to engage with our members’ concerns or modify its plans in any way.
“This has not been a genuine consultation but a box-ticking exercise by a company intent on steam-rollering through job losses to a plan that has already been decided.
“The absolute refusal to engage with our members’ concerns is a morally bankrupt betrayal of a skilled, experienced and committed workforce.”
The union said it has “formally rejected” Diageo’s consultation process and plans to write to local politicians across the region “warning of the impact of the redundancies on the fragile economies of rural communities”.
The group added a consultation process on possible redundancies was also happening at Diageo’s other production, bottling and distribution sites in Scotland.
In June, a report from the The Financial Times suggested CEO Sir Dave Lewis had asked company executives to reduce staff numbers and other costs at the company.
Later that same month it then emerged that the Captain Morgan rum distiller could be cutting more than 100 jobs from its business in Ireland.
