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Diageo pledge to genuine consultation
02/07/2009
Diageo has pledged that their consultation on Scottish operations will be genuine and that it will be an opportunity for the Scottish Government and unions to urge alternative proposals, First Minister Alex Salmond said today.
The First Minister was speaking from Bute House, Edinburgh, following a meeting with Diageo Scotland Managing Director, Brian Donaghey, where Mr Salmond urged the company to reconsider some of its restructuring proposals.
The First Minister will also be speaking to Chief Executive Paul Walsh later today with an urgent meeting currently being arranged.
The company has also agreed to release the information and key figures behind the business plan, which informed the review, to unions and government tomorrow.
Diageo also guaranteed the First Minister that there will be no compulsory redundancies in any circumstances for 12 months.
The Cabinet Secretary for Finance and Sustainable Growth, John Swinney, will visit Kilmarnock tomorrow to meet with local government and union representatives.
Mr Salmond said:
"The decision by Diageo to restructure with the effective threat to 500 Scottish jobs is a serious move which could have grave consequences for the Ayrshire, Glasgow and the Scottish economy.
"The company has made billions of pounds out of Scotland and they must understand the full economic consequences of their proposals, particularly to the economy of Kilmarnock and Ayrshire.
"Diageo has an obligation to let their workforce representatives know what's happening and to engage with the Scottish Government and unions. These are just some of the points I stressed in today's meeting where Diaego agreed to release the information behind these proposals to the Scottish Government and the unions.
"Following the lack of notice in announcing these proposals, this move must allow for a genuine consultation process involving all relevant parties.
"The company has agreed to consider alternative proposals during the consultation process, which begins tomorrow. Additionally, I was given a guarantee that there would be no compulsory job losses in the next 12 months.
"I will be speaking to Paul Walsh later today followed by a face-to-face meeting where I will again stress these points and urge for active reconsideration of Diageo's proposals.
"This will be a particularly worrying time for workers, and their families, at Kilmarnock and Port Dundas. However, the Scottish Government will continue to strain every sinew to get the best possible outcome from the company's recent decisions.
"The food and drink industry is vital to the Scottish economy and Diageo remains a significant employer in Scotland. Diageo employees in Scotland can be assured that the Scottish Government is doing all it can to protect jobs."