Scottish government urges Diageo to reconsider restructuring

Alex Salmond met Diageo Scotland managing director Brian Donaghey yesterday to ask the company to reconsider its proposals and carry out a genuine consultation process with all parties involved.

He criticised the lack of notice given in announcing the proposals and said the move could have grave consequences for the Scottish economy.

“Diageo has made billions of pounds out of Scotland and they must understand the full economic consequences of their proposals, particularly to the economy of Kilmarknock and Ayrshire,” said Salmond.

“This will be a particularly worrying time for workers, and their families. The Scottish Government will continue to strain every sinew to get the best possible outcome from the company’s recent decisions.”

Diageo announced on Wednesday (1 July) that it was cutting 900 jobs in Scotland as it restructures its business.

It is closing a packing plant in Kilmarnock, costing some 700 jobs, and 30 jobs will also be lost at the Shieldhall plant in Glasgow.
 
The company is, however, investing £86m in expanding its Leven plant in Fife and creating 400 new positions. If it obtains planning permission, it will build a new packaging hall in Fife to open in mid-2011.

It is also closing the Port Dundas distillery in Glasgow and adjacent Dundashill Cooperage resulting in 140 job losses, and will relocate a number of other staff as part of the restructuring.

There would be no enforced job losses for 12 months, the company said.

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