Unions and politicians in scramble to protect workers
Diageo job cuts shock Scottish whisky trade
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Scotland’s whisky industry has suffered a devastating blow, with one of its leading players announcing plans to axe up to 900 jobs.
Diageo – the world’s largest spirits firm and the name behind iconic whisky brand Johnnie Walker – said yesterday it was closing its Kilmarnock packaging plant, with around 700 posts going between now and the end of 2011. The group is consolidating packaging operations at sites in Glasgow and Fife.
It is also closing its Port Dundas grain whisky distillery in Glasgow, with the loss of up to 140 jobs.
Changes to working practices at Diageo’s packaging plant at Shieldhall, in Glasgow, are expected to see a further 30 positions going, while around 200 Scottish workers are being re-deployed as the firm looks to cut costs in the recession.
The firm said there would be no compulsory redundancies at impacted sites for 12 months.
Diageo Scotland managing director Bryan Donaghey said the restructuring would help secure the sustainability of business in Scotland.
He added: “85% of our output from Scotland is exported to over 180 markets worldwide. We need to be competitive in a global context and the restructuring announced is a key part of this. We will do everything we can to support our employees through this difficult time.”
Unions and politicians voiced shock at the job cuts, which will be partially offset by the creation of 400 posts at the packaging plant in Fife.
Grahame Smith, general secretary of the Scottish TUC, said the announcement had come as a total shock to the workforce, adding: “The impact on the Kilmarnock area is potentially devastating.”
The Scottish Government described the move as “extremely disappointing” and said First Minister Alex Salmond would meet senior bosses at Diageo today.
Finance Secretary John Swinney added: “The government is asking the company to reconsider this course of action and to look at alternatives which protect employment.”
Kilmarnock’s plant is in the constituency of former defence and Scottish secretary Des Browne, who said he was devastated that the town’s historic link with Johnnie Walker was ending.
Port Dundas falls within the Glasgow North East constituency, where a by-election is looming after the recent resignation of Commons speaker Michael Martin.
Diageo’s whiskies also include Benmore, Haig, Spey Royal, Vat 69 and White Horse plus a host of single and classic malt brands.
Other drinks in the group’s portfolio include Baileys liqueur, Captain Morgan rum, Guinness stout and Smirnoff vodka.
Scotland is one of Diageo’s largest spirit supply centres, employing around 4,500 people and producing nearly 50million cases of Scotch whisky and white spirits.
The firm hopes to save an extra £40million a year from the changes in Scotland.
