Diageo unions are pushing for a 5 percent wage rise and are preparing to go on a strike for the same in this month in Scotland. According to the unions, the strike would result in costs amounting to 1 million pounds each day for the company, a source with knowledge of the mater informed reporters.
A spokeswoman said that the initial demand of the unions was a 5 percent rise in wages but they reduced their demand to 3.5 percent as of now. However, the source claims there was never an agreement to drop their pay rise demand. The negotiations for the pay rise started back in May.
Half of Diageo Scottish workers are from GMB and Scotland’s Unite unions who are preparing to go on a strike at various sites of the company including Leven, Shield hall and Cameron Bridge from September 17 to 27. This comes as the negotiations of the wage rise went down last month.
Diageo offered to raise the pay of its workers by 2.5 percent and then 2.8 percent. However, both the offers were rejected by the unions. The workers had received a raise in pay of 3.2 percent last year.
Regional industrial officer for Scottish union Unite, Bob MacGregor, said that the workers will consider a wage rise at least above that of last year. He earlier said the strike will cause a shutdown of operations at Diageo if the workers go forward with the strikes.
The unions argued that the pay rise should be thought of in relation to the profits of the spirit maker’s annual profit which amounted to 4.2 billion pounds last year.
The spokeswoman for the company said that the pay rise the company offers to its workers is in line with the inflation in the economy – the Consumer Price Index and the Retail Price Index.