Taskforce has plan to put to Diageo

Group hopes company will listen to its ideas to save nearly 1,000 threatened Scottish jobs

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A proposal to counter drinks giant Diageo’s plans which could see nearly 1,000 jobs axed was agreed last night by a taskforce set up to fight the moves.

More than 900 jobs are under threat at the whisky giant, including 700 at its Johnnie Walker bottling plant in Kilmarnock, and 200 more at the Port Dundas grain whisky distillery in Glasgow.

The proposal agreed at a meeting last night chaired by Finance Minister John Swinney provides for continuing production at Port Dundas and the development of a new plant at Kilmarnock. Mr Swinney said: “We had a constructive meeting of the taskforce which brings together the trade unions, local authorities, Scottish Enterprise and local politicians with the government – with the objective of protecting employment following Diageo’s announcement.

“We have formulated a proposal to put to Diageo which will focus on continuing production activity at Port Dundas in Glasgow and the development of a new bottling plant in Kilmarnock on a greenfield site.”

Diageo has claimed it will offset the cuts by creating 400 new jobs at its packaging plant in Fife.

Scotland is one of Diageo’s largest spirit supply centres, currently employing around 4,500 people and producing nearly 50million cases of Scotch whisky and white spirits.

The firm hopes its “restructuring” plans will save an extra £40million a year from the changes in Scotland, coming on top of £120million a year already identified around its global operations and expected cost savings from its Irish review.

Mr Swinney added: “We are ready to put the plan to Diageo and will do that swiftly.

“We look forward to discussions with the company on the details of our proposals. They have pledged to engage with us on our proposals and that is exactly hat we expect them to do.

“The government, working with taskforce members, is doing everything in its power to try to protect employment in Scotland. We look to Diageo to engage with us positively in taking forward these proposals and securing a positive benefit for the economies of Glasgow, Kilmarnock and Scotland.”

Des Browne Labour MP for Kilmarnock said: “Kilmarnock has now given the Scottish Government a proposal which can keep Johnnie Walker in Ayrshire and support hundreds of sustainable jobs.

“The challenge now shifts to the Scottish Government and Scottish Enterprise to bring Diageo to the table and negotiate a positive outcome.”

Earlier, the Unite union urged politicians to turn down offers by Diageo for corporate hospitality at the Johnnie Walker Golf Championship in Gleneagles later this week.

John Quigley, Unite’s regional secretary for Scotland, said: “We are asking politicians to support the campaign by formally rejecting Diageo’s over- tures.

“Diageo is the world’s biggest drinks company and it is highly profitable, making a £2,226million profit last year alone.

“It isn’t in financial difficulty, as the sponsorship of this prestigious sporting tournament makes crystal clear.”