Union warning as Diageo announces £100m restructure

Published: 12 March, 2013

Unite the union has warned Diageo that is must not make its UK and Irish workforces pay for business realignment in its...

Unite the union has warned Diageo that is must not make its UK and Irish workforces pay for business realignment in its "search for ever-increasing profits".

The warning comes as Diageo announced the realignment of its global supply chain and procurement operation to "enhance alignment between global supply and Diageo's 21 key markets". The global drinks giant said in a statement that "responsibility for local operations will be transferred to the markets and regional structures will be reduced".

Diageo said an initial review has established that "efficiency-driven cost savings can be delivered which together with savings from footprint changes and cost reductions in respect of the regional supply organisations are expected to amount to approximately £60 million per annum".

These savings are expected to be achieved in three years and costs associated with the restructuring are estimated to be approximately £100 million.

Jennie Formby, Unite national officer for food and drink, said: "Scottish workers have already paid a very heavy price for Diageo's profits. In 2011, we saw the historic home of Johnny Walker in Kilmarnock shut and hundreds of Scottish jobs go.

"There must be no repeat of what has gone before where our members at UK or Irish plants pay for increased profits and tasty dividends for the board and shareholders with their jobs and pay.

"This company must conduct itself in a more socially responsible way, beginning with stating clearly that it will secure the jobs of those who have grown this company to international success," she added.

A Diageo spokeswoman said: "It is too soon to say, but there is likely to be some impact on jobs, as regional structures are reduced."

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