SCOTTISH workers at spirits giant Diageo could be set for strike action after they rejected what a trade union called an “insulting” pay offer.
The 2.5% offer was rejected by 95% of staff at the Johnnie Walker maker. Unite the Union said it will now move to ballot its members for strike action after the “derisory” offer.
Staff frustrations come at a time when Diageo is ploughing money into a flagship Johnnie Walker visitor attraction in Edinburgh, as part of a £150 million investment in Scottish whisky tourism.
The share price of the spirits group, which also makes Smirnoff, Gordon’s and Guinness, has risen by more than 20% since the start of the year on the back of strong gin and whisky sales. In January, Diageo announced operating profits for the six months to December 2018 had risen to £2.4 billion, up 11% on the same period a year earlier.
Unite said workers deemed the pay offer “paltry” in the circumstances. Regional industrial officer Bob McGregor said: “This offer is not only insulting, it’s disgusting given the profits made off the backs of hard-working Unite members, who deserve a fairer share of the profits they generate for this hugely successful company.
“Diageo appears willing to spend millions creating a whisky shop for Edinburgh’s tourists, while offering the workers who built the Diageo brands we all know and recognise a paltry 2.5%.”
Separate negotiations over pay increases have taken place with staff at Diageo sites in England and Ireland.
A Diageo spokeswoman said: “Annual wage negotiations have been taking place with both the GMB and Unite unions in Scotland.
“Following a consultative ballot of their members, the unions have rejected our offer, equal to an increase of 2.8% on overall benefit and pay packages for our employees.
“This offer is made in the context of maintaining a strong reward package and the need for our manufacturing operations to remain competitive.
“Unite have informed us that they now plan to progress to a ballot for industrial action and we remain open to continued talks to secure an acceptable resolution.”
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