MP Calls For Pension Cuts Reversal

Diageo should heed Prime Minister’s warning as MP calls for pension cuts reversal

Less than 24 hours after the Prime Minister warned Britain’s wealthy elite that they cannot play by a different set of rules on jobs and pay, GMB Scotland has welcomed Westminster support for members defending pensions from cuts in drinks giant Diageo.

As the trade union strike ballot enters its final week, Glasgow South West MP Chris Stephens has tabled an Early Day Motion (EDM) calling on Diageo executives to reverse moves to close the workers’ ‘final salary’ scheme and also their ‘lifestyle’ plan to new entrants.

Diageo recently increased its operating profits to an eye-watering £2,841 million while CEO Ivan Menezes has been awarded a 12 per cent pay increase, taking his maximum earnings to a remarkable £8.8 million.

Despite this significant growth, Diageo is targeting savings of £30 million a year from its workers’ pensions.

GMB Scotland Organiser Louise Gilmour said: Diageo is happy to significantly increase CEO pay in the wake of billions of pounds of profit but they won’t protect the workers’ pensions who have contributed massively towards the success of the business.

Only last night the Prime Minster warned of the ‘tensions and differences’ between those gaining from globalisation and those losing out and of the new elite ‘playing by a different set of rules’ – she could have been talking about Diageo.

That’s why the intervention of Chris Stephens is timely and welcome because his EDM highlights yet again the gross disparity between CEO remuneration and that of the ordinary worker.

So Ivan Menezes would do well to heed the Prime Minister’s words. He should be telling his executives to look at what’s going on in the world, get back to the negotiating table immediately and put forward a fair offer that would swiftly resolve this dispute.”

ENDS

Contact: GMB Scotland Organiser Louise Gilmour on 07921 289739 or Peter Welsh, GMB Scotland Communications, on 07976 447077.

Peter Welsh
Head of Campaigns, Communications & Policy
GMB Scotland
Tel: 0141 352 8138
Mob: +44 7976 447077