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GMB Slams‘Shameful’ £3.7 Billion Diageo’s Below Inflation Pay Threat On Scottish Workers

Wednesday, August 29, 2018

GMB slams ‘shameful’ £3.7 billion Diageo’s below inflation pay threat on Scottish workers

Less than a month after posting eye-watering operating profits of £3.7 billion, GMB Scotland has branded Diageo ‘shameful’ after the drinks giant told staff they will not be improving a below inflation pay offer for the next year.

GMB will launch a consultative ballot of its membership across Diageo’s Scottish operations from tomorrow (Wednesday 29 August), with a strong recommendation to reject the employer’s 3 per cent ‘final offer’.

But in a further twist after negotiations ended last week, Diageo bosses moved to block trade union reps from conducting a ballot in the workplace after GMB indicated that it would recommend its members reject the offer.

GMB has urged Diageo to withdraw its threats to prevent staff from voting on their pay but will conduct ballots on the factory gates if necessary.

GMB Scotland Organiser Keir Greenaway said: “Diageo’s below inflation offer and their threats to block a democratic vote on that offer are shameful – a new low for employment relations in the UK.

This is a multi-national goliath that has just increased its operating profits by 3.7 per cent to an eye-watering £3.7 billion, yet its staff will have to fight to avoid a real-terms pay cut for the next year.

The offer falls short of the current Retail Price Index (RPI) rate of 3.2 per cent and does nothing to tackle the massive gulf between shop floor pay and executive pay, with CEO Ivan Menezes set to enjoy a 266 per cent increase to his own pay and conditions.

This represents everything that’s wrong with the economy but we won’t back down to bully-boy tactics and whether the factory gates are opened or closed to us, we will campaign to ensure our members receive a fair share of their employer’s profit.”


Contact: GMB Scotland Organiser Keir Greenaway on 07855 017842 or Peter Welsh, GMB Scotland Communications, on 07976 447077.