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Diageo is the largest multinational beer, wine and spirits company in the world.Its most well-known brands include: Smirnoff, Johnnie Walker, Captain Morgan, Baileys, Guinness, Bushmills and Sterling Vineyards.
Formed in 1997 from the merger of Guinness plc and Grand Metropolitan plc, Diageo are not short of a bob or two.In 2002, Diageo reportedly sold the Burger King fast food restaurant chain to a consortium led by the U.S. firm Texas Pacific for $1.5 billion.
It has been estimated that their current profits are in excess of £2bn.This represented a 10 per cent increase on last year.Indeed, Diageo is so flush that it paid its Chief Executive - Paul Walsh - £5m in 2008.
However, it seems that Diageo bosses are not content with profits of £2.4bn.They want to make more.And the way to do this?You guessed it - sack around 900 Scottish workers!
In July 2009, Diageo announced that they would be closing the Johnnie Walker blending and bottling plant in Kilmarnock.This would mean the loss of 700 jobs.The JohnnieWalker brand has been associated with Kilmarnock for nearly 200 years.This means absolutely nothing to Diageo bosses.
However, this is not all.The multinational giant also wants to put even more Scottish workers on the dole.Another 200 jobs will be lost if it closes down the historic Port Dundas Grain Distillery in Glasgow.
Solidarity General Secretary Patrick Harrington has already hit out at Diageo.In a statement entitled Defend Jobs at Diageo! issued on 10th September, he said: “The plan to scrap 900 Scottish jobs is an outrage. It’s simply not on”.
Now Solidarity is promoting three ideas for discussion:-
Step Up The Campaign.The Scottish Trades Union Congress – STUC - should massively step up the campaign to defend jobs at Diageo.The whole of Scotland should be made aware of Diageo’s terrible decision to slash hundreds of jobs.
In July, around 20,000 people marched through the centre of Kilmarnock to protest against Diageo.Similar sized marches should be planned for all of Scotland’s main cities and towns.
Occupy The Sites? Diageo workers at Kilmarnock and Port Dundas may consider occupying both sites until the company drops its plans.
Earlier this year Visteon workers in West Belfast successfully occupied the former Ford car parts factory. This was in protest at paltry statutory redundancy payments.In the end, the workers got a successful deal.
Diageo workers might do the same.
Nationalise Diageo? Scottish workers in general – and the STUC in particular - should consider how best to support their fellow workers at Diageo.Workers should put pressure on the company to stop the job cuts.
Any occupation at Kilmarnock and Port Dundas could be built on to involve the trade union movement and local communities to force the government to intervene.The government should nationalise Diageo to save these jobs.
Solidarity General Secretary Patrick Harrington asserted:-
“Solidarity Trade Union is a Nationalist Union.As such we are completely opposed to vast multinational corporations like Diageo. Diageo represents the brutal side of capitalism.There are no bailouts or bonuses like the bankrupt fat cats get.We want to ensure jobs - not dole.
In the long run I would like to see the nationalization of all multinationals. Diageo should be broken up into more manageable, organic, parts.Then the likes of Smirnoff, Johnnie Walker, Captain Morgan, Baileys, Guinness, Bushmills and Sterling Vineyards should become independent companies again. These independent companies may be better off as workers co-operatives or Trusts.Here workers own - and owners work. Only radical solutions will secure genuine national prosperity."
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