MSP Call For Diageo To Reverse Pension Cuts Plan

GMB Welcomes MSP Call For Diageo To Reverse Pension Cuts Plan

GMB Scotland has today (Tuesday 8 November) welcomed Scottish Parliamentary support in their campaign to defend their members pensions at drinks manufacturing giant Diageo.

With a two week industrial action ballot currently underway, Central Scotland MSP Richard Leonard has tabled a motion calling on Diageo to reverse its plans to close entirely the company ‘final salary’ scheme and also it’s ‘lifestyle’ pension plan for 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 weeks of ACAS talks to resolve the deadlock and after a rejection by consultative ballot from workers of Diageo’s ‘final offer’, which failed to lift the respective schemes closures and restrictions, the company reiterated its refusal to lift its impositions again this week.

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

This is another example of the obscene disparity between CEO remuneration and the ordinary worker and if there is one company that can most certainly afford to sustain decent pension arrangements for its workers then it’s Diageo.

Richard Leonard’s intervention is warmly welcomed because we need to highlight in the Scottish Parliament that fat-cat pay and cuts impositions by multi-national companies remain prevalent in Scotland.

This is simple question of fairness.  Diageo can more than afford to help pay for a decent pension for its workers and we are calling for them to lift their cuts agenda and get back round the negotiating table.”

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