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Britain

Drinks workers warn tax-dodging Diageo not to slash jobs

Tuesday 12 March 2013

Workers for global drinks firm Diageo told their bosses to pay their taxes today as they warned the company not to axe jobs in its endless thirst for higher profits.

Diageo is one of the world's most successful drinks producers, and makes Guinness and Johnnie Walker whisky.

It employs about 27,000 workers and has operations in 21 countries, with production sites in Britain and Ireland.

Its profits leapt by almost a third last year to more than £3 billion.

But it has also slashed hundreds of jobs, closing a whisky distillery in Scotland.

Many of Diageo's workers are members of the Unite union.

Unite warned Diageo not to make its British and Irish workers "pay yet again for business realignment in its search for ever-increasing profits."

The company has said it will "refocus" its operations.

Unite national officer Jennie Formby said: "Scottish workers have already paid a very heavy price for Diageo's profits. In 2011, we saw the historic home of Johnnie Walker in Kilmarnock shut and hundreds of Scottish jobs go.

"There must be no repeat of what has gone before where our members at UK or Irish plants pay for increased profits and tasty dividends for the board and shareholders with their jobs and pay.

"Diageo is extremely successful, and last year profits jumped by 32 per cent to a colossal £3.1 billion, yet the company prefers to pay its tax via Amsterdam to avoid paying what it is due in this country.

"This company must conduct itself in a more socially responsible way, beginning with stating clearly that it will secure the jobs of those who have grown this company to international success."

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