UNITE says "Diageo workers' courageous fight wins them a better deal"

A much-improved and unconditional offer from Diageo has been accepted by its Scottish workforce, Unite the union said.

The union and the workers had been fighting for a fairer redundancy deal to compensate the hundreds of workers set to lose their jobs with the distillers as it forces through its restructuring plans next year.

After months of campaigning, and amid the threat of industrial action by the workers to hit the company early in 2010, Diageo agreed to increase the termination payments by £4000 to £9000 per person, and remove altogether its previous conditions that the payment would be based on productivity and attendance. Diageo has also opened up the pension scheme to allow part of the packages to be paid in to workers' pension pots, enhancing both the retirement lump sum and the pension.

Workers voted on the proposals in workplace ballots at the Kilmarnock, Shieldhall and Port Dundas plants. The offer was accepted by almost four to one.

Jennie Formby, Unite national officer for the food and drinks sector, said that there was widespread sadness that Diageo would not listen to reason on its plant closures but that the workers deserved every credit for the fight for fairness:

"The final package is one that provides benefits for members that are second to none. But we firmly believe that without the courage and determination of the workers, and the excellent leadership of their union stewards, we would not have seen any movement from the company. The fighting spirit the workers demonstrated throughout the whole campaign let Diageo know that they simply could not walk away from these communities without fair and proper compensation.

"Every site had a very clear majority to accept, with Kilmarnock as the largest site showing an 80% acceptance, which is a very clear endorsement of the proposals.

"Of course we are very disappointed not to have been able to save sites from closure, but this is a painful reminder that it is only too easy in the UK for companies to close sites in this way. We have advised Diageo management of the result and also confirmed that our campaign is now formally at an end."