Swinney tells Diageo: Scots won't accept social cost of 900 lost jobs

Published on Sunday 12 July 2009 21:50

THE finance secretary has warned Diageo that the "social consequences" of its plans to shed hundreds of jobs are "not acceptable" to the people of Scotland.

John Swinney said his priority is to ensure the drinks giant's proposals to cut 900 posts by closing the Johnnie Walker bottling plant in Kilmarnock and a distillery at Port Dundas in Glasgow do not go ahead.

Mr Swinney will chair cross-party discussions tomorrow aimed at saving the jobs, along with representatives from Scottish Enterprise, trade unions, and local authorities.

The Scottish Government has asked that the company make available the financial information behind its original decision, and has vowed to pursue an alternative business proposal.

Mr Swinney's comments came as Diageo's chief executive was accused of hypocrisy yesterday for continuing to sit as the European chairman of the International Business Leaders Forum, a body which promotes business as a means of providing "sustainable and equitable societies".

The proposals helmed by Paul Welsh – whose pension pot is valued at 8.2 million – would "destroy" the town of Kilmarnock by pressing ahead with the cuts scheme, one MSP said.

Speculation is also mounting over the company's ownership of the five-star Gleneagles Hotel in Perthshire, with suggestions it is close to agreeing a 250m sale of the property to part of the Dubai royal family.

Mr Swinney, who described Diageo's business proposal as "potentially devastating cuts," said: "Our priority is to ensure Diageo's proposals, which would have a serious impact on the Scotch whisky industry and Ayrshire economy in particular, are not implemented."

Backed by Scottish Enterprise, Glasgow City Council and East Ayrshire Council, he emphasised that Diageo must hold a "proper consultation".

He added: "Diageo workers can be assured that we are working flat out in our efforts to preserve the strong relationship between Kilmarnock and Port Dundas and the Scotch whisky industry.

"Tuesday's meeting will focus on bringing together the most cohesive arguments and package of initiatives possible.

"Diageo must realise that the social consequences of their financial proposals are not acceptable to the people of Scotland."

Scottish Secretary Jim Murphy will also raise the proposed closures this morning when he holds talks with Scottish Enterprise chairman Crawford Gillies.

Mr Murphy said: "When I met the chief executive of Diageo in London on Wednesday he assured me that they would consider any alternative proposals that emerge from Scottish Enterprise."

Diageo is said to be in advanced talks with the al-Tajir family over the sale of Gleneagles.

A spokesman for the al-Tajir family confirmed they had held talks in 2002 about buying the Perthshire hotel, but refused to comment on the latest rumours of negotiations.

Meanwhile, Formula One fans have been urged to sign an online petition opposing Diageo's plans. One of the firm's key brands, Johnnie Walker, is the sponsor of the McLaren Mercedes team, home of British driver Lewis Hamilton. Kilmarnock MSP Willie Coffey is urging fans to back the campaign. More than 8,000 have added their names so far.