Workers based at Diageo’s plant in Leven have started to strike in a dispute over pay.
Strikes organised by Unite the Union began industrial action on Saturday for 48 hours, with a series of further stoppages scheduled to take place, ending on 3 April.
The walkouts follow the introduction of a lower rate of pay for new starters without consultation with unions. This issue has been ongoing and was first raised through the grievance process in 2019.
Unite estimates some of its engineering members are set to lose around 6% of their pay when moved to the lower rate.
The strikes will directly impact engineering support for the bottling plant. Unite believes it would not be safe to run the plant without the support its members provide.
However, a spokesperson for Diageo pointed out that the industrial action only involves 10 people and the Leven plant operated as normal over the weekend.
Last year, Diageo reported operating profits were up by 18.2% to £4.4bn, primarily driven by organic growth, with net sales up 21.4 per cent to £15.5bn. The company has almost 28,000 employees globally.
Unite general secretary Sharon Graham said: “Diageo recently recorded £4.4bn in profits which equates to a profit of around £157,000 being generated by every employee.
“They are awash with billions in profit, so to then attempt to cut our members’ pay is a shocking example of corporate greed. Unite will always stand with our members to protect pay, terms and conditions.”
Diageo produces brands including Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
Unite regional officer Bob Macgregor added: “Our engineering members who keep the bottling plant safe to operate at Leven have been left with no choice but to take a stand against Diageo - the strike action will continue until they get what they deserve.”
A Diageo spokesperson said: “This dispute is with 10 of our weekend shift engineers, in relation to the number of night shifts required and associated shift premiums.
“We are not introducing a lower rate of pay for new starters, we are proud of the pay and benefits packages we provide to our people across all our sites, but unfortunately, this group of employees have rejected our proposal.
“We have well developed contingency plans in place to ensure the site can continue to operate safely and as planned - we remain committed to seeking a resolution to this dispute and are open to further discussions.”
Separately, Unite has confirmed that more than 200 members have accepted an improved wage offer at Petrofac Repsol offshore installations.
The deal is the product of a year-long negotiation process and will result in a salary increase of up to 20.2% - the cash equivalent of up to £18,000 - and also enhancements to allowances.
Unite’s members accepted the latest Petrofac Repsol offer by 84% on a ballot turnout of 97%. It now brings to a close weeks of industrial action in a bitter dispute over pay, terms and conditions.
The installations covered by the deal include the Arbroath, Auk, Bleo Holm, Claymore, Clyde, Fulmar Alpha, Piper Bravo, Montrose, Saltire, Tartan Alpha, and Flotta oil terminal. The workers involved include electrical and mechanical technicians, deck crew, controllers and riggers.
The dispute had centred on the removal of a 10% equal time payment, years of below inflationary pay increases, as well as issues around payments for Offshore Energies UK medicals, mileage and stand in duties.
Unite industrial officer John Boland stated: “Unite members have shown their determination in this dispute to recover previous reductions in their salary, and have taken strike action to achieve this outcome.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
