Employees at Diageo’s largest distillery are set to strike for almost three weeks in a dispute over job cuts, threatening disruption to the production of some of the drinks giant’s biggest brands.
More than 100 Unite members at the Cameronbridge distillery in Fife will walk out on 28 September, with targeted industrial action by different groups of workers continuing until 15 October.
The union said the action could bring production at the site, Europe’s largest grain distillery, to a “standstill”.
Cameronbridge employs around 200 people and produces grain spirit used in blended whiskies including Johnnie Walker, Bell’s, and Buchanan’s, as well as supporting production across Diageo’s wider spirits portfolio.
Diageo is reportedly pushing ahead with a major cost-cutting programme under chief executive Sir Dave Lewis amid weaker global demand for spirits.
The Guinness and Smirnoff owner is seeking to deliver significant savings through a restructuring of its operations, with hundreds of jobs set to be cut across Scotland.
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Unite said dozens of roles have been under review at Cameronbridge and accused the drinks giant of failing to properly consult workers over the proposals. It has also raised concerns about safety if staffing levels are reduced while production expectations remain unchanged.
Diageo has disputed the union’s account of the consultation process and said the restructuring was necessary to ensure the business remained competitive over the long term. A person close to the company told the Financial Times that it had been consulting with Unite over the proposed changes for several months.
This action comes against a challenging trading backdrop for the drinks giant.
Diageo’s reported net sales fell 3% to $19.6 billion in the year to 30 June, while reported operating profit dropped 27.2% to $3.2 billion, hit by restructuring and impairment charges.
Organic sales declined 2% as weaker trading in North America and Asia Pacific offset growth elsewhere.
The group has already shed almost 2,000 roles over the past year as Lewis accelerates his turnaround of the business, with Diageo targeting $1 billion in cost savings.
