The Unite and GMB unions are to ballot members on industrial action at drinks giant Diageo in a dispute over pensions
Union leaders say an average career pension scheme will be worth much less to workers if introduced by the company in place of its final salary pension.
They also say Diageo’s proposals to close a separate scheme to new employees and replace it with a defined contributions pension will bring much worse returns for staff.
Last night the company described the unions’ rejection of a new proposal put forward after talks at ACAS as “disappointing.”
Unite regional officer Pat McIlvogue said: “We entered into negotiations with the company in good faith. We agreed to work with the conciliation service ACAS and put forward a proposal that would help protect our members’ pensions, but would still save the company money.
“The company has rejected this, and we have no option now but to ballot our members on industrial action.”
GMB Scotland organiser Louise Gilmour said the union was not prepared to accept a “race to the bottom on pensions”.
A Diageo spokesman said following discussions at ACAS, the company had put forward an “alternative and significantly improved proposal.”
He added: “The unions have subsequently said that their members are not supportive of the alternative proposal, despite the unions themselves confirming that this second proposal was the best possible negotiated outcome.
“Following the rejection of the alternative proposal the unions have now chosen to ballot their members for industrial action.
“This is clearly disappointing, not in accordance with the positive industrial relations Diageo has had with its employees and is premature, since the company has not moved into formal consultation on the alternative proposal with its employees.
“Management at Diageo remain committed to finding a sustainable solution on pensions that manages the growing risk and cost for the company with the long-term needs of employees in a competitive pension.”
