Job cuts dominate alcohol agenda

Redundancies continue to dominate the agenda in the alcohol industry as companies look for ways to streamline operations to steer them through the global recession.

Just days after Diageo announced that 900 jobs are to go in Scotland with the closure of the Port Dundas distillery and the Johnnie Walker bottling plant, Pernod Ricard UK revealed plans to lay off 20 sales, marketing and communications staff.

The row over Diageo’s plans to restructure its Scotch operations has gone right to the top of the Scottish government, with First Minister Alex Salmond joining union leaders and Scottish Enterprise in petitioning Diageo to reconsider its proposals.

The First Minister will today join Douglas Reid, the leader of East Ayrshire Council, alongside union representatives and staff at the Johnnie Walker plant in Kilmarnock to encourage people to sign a Keep Johnnie Walker in Kilmarnock petition.

Meanwhile finance secretary John Swinney yesterday chaired a meeting with Glasgow and East Ayrshire councils, the Unite and GMB unions, MPs, MSPs and the Scottish government in an effort to find alternatives to the closure proposals.

Labour economic spokesman David Whitton said: “We want to ensure there is no stone left unturned in relation to an alternative plan.

“It would be one that would be taken seriously enough by the company for them to reconsider what they are currently planning.”

Diageo says the closures will save it £20 million a year by shutting down the two sites and moving work to plants at Leven and Cameron Bridge in Fife and Shieldhall in Glasgow. It also says the job losses would be offset by the creation of 400 jobs at Leven.

Labour MSP Patricia Ferguson this week announced plans for a cross-party summit to oppose the closures, to be held in the first week of August.

She said: “It is essential we work together on this. We cannot divide the workforce in this campaign. Unity is strength.”

Diageo bosses are set to pull the plug on a multi-million pound golf tournament in an effort to cut further costs.

The company is due to announce the most prestigious golf event in the Far East, the Johnnie Walker Classic, is to be shelved for at least 12 months, according to the Daily Record.

The annual competition was to have taken place in China in January, with a £1.5m prize fund, but the paper claims firms who usually provide services at the event have been told by Diageo’s representatives in Australia and the Far East they will not be needed.

Meanwhile Pernod Ricard UK this week announced that around 20 sales, marketing and communication staff are set to be made redundant as part of internal restructuring.

In a short statement the company said: “Pernod Ricard UK announced today it is undergoing a restructure of its sales, marketing and communication functions.

“The proposed restructure may result in around 20 redundancies and the organisation is therefore undergoing a formal consultation process.”

The company said it must discuss the situation with staff before it can comment further.

Alan Lodge, 15.07.2009