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News
Workers take Diageo fight to the shareholders
Angry workers are today set to besiege the Diageo AGM in London in a desperate attempt to avert 900 job losses in Scotland.
The workers, with the help of the Unite union, will lobby shareholders to ask questions about the company’s restructuring plans, which include the controversial closure of the Johnnie Walker plant in Kilmarnock and the Port Dundas distillery in Glasgow.
Unite has drawn up an alternative plan which it says can save the company in the region of £80 million as well as prevent job losses.
Outside the AGM, workers will be handing out a letter to shareholders outlining the alternative business solution while bearing placards with the message “Don’t Ruin Lives to Squeeze More Profit”.
Unite members are also planning to hand over a giant “message in a bottle” Diageo CEO Paul Walsh containing some of the hundreds of messages of support the union has received in opposition to Diageo’s proposals.
Simultaneous protests will also be held at lunchtime by workers outside the Kilmarnock and Port Dundas plants.
Meanwhile Diageo today announced that net sales in the last quarter continued to be weak when compared the same period in 2008.
In the three months ended 30 September 2009 net sales were down 6% on an organic basis against the comparable period. Net assets were £4,225 million at 30 September 2009, having been £3,936 million at 30 June 2009.
Walsh said: “As we anticipated consumer trends across our markets remain broadly unchanged since the year-end.
“Therefore net sales in the first quarter of the new financial year have been weak when compared to the strong performance of the first quarter last year.
“In the first quarter of last year stock levels increased. However this year, stock levels have not risen in the first quarter and in our biggest market, North America, stock levels in our US spirits distributor channel are below those held at 30 June 2009.”
Walsh added: “The restructuring programme is on track to deliver the forecast benefit of a £120 million reduction in costs year on year. In addition we continued to benefit from efficiencies in marketing spend and media rate deflation.
“The year has started as we thought it would and we reiterate our guidance for low single digit organic growth in operating profit in fiscal 2010.”
Alan Lodge, 14.10.2009