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Redundancy Rights: Diageo Reaches Deal With Scottish Workers

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Unite union announced Diageo agreed a deal on  with hundreds of Scottish workers on Thursday.  It said Diageo had provided a "much-improved and unconditional offer" after months of campaigning by workers and union officials.

Diageo agreed to increase the worker termination payments by £4,000 - to £9,000 per person - and dropped its previous condition that payments should be based on productivity and attendance.

Diageo has also opened up the pension scheme to allow part of the packages to be paid in to workers' pension funds, enhancing both their retirement lump sum and pensions.

Workers voted to accept Diageo's offer by almost four to one.

Jennie Formby, Unite national officer for the food and drinks sector, said there was widespread sadness that Diageo was closing plants in Scotland, but still tried to accentuate the positive:

"The final package is one that provides benefits for members that are second to none.  We firmly believe that without the courage and determination of the workers, and the excellent leadership of their union stewards, we would not have seen any movement from the company.

"The fighting spirit the workers demonstrated throughout the whole campaign let Diageo know that it simply could not walk away from these communities without fair and proper compensation.

"Of course we are very disappointed not to have been able to save plants from closure.  It is another reminder that it is only too easy in the UK for companies to close sites in this way."

Redundancy rights

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