Seventy seven per cent of Diageo staff have voted in favour of industrial action against plans to cut their pensions, it has been revealed.

Despite enjoying profits of £2.8bn and awarding its CEO £3.8m in payments last year, Diageo is looking to alter the Diageo Pensions Scheme into a career average scheme worth significantly less to members.

The majority of Unite trade union members voted for strike action against the company’s plans and a further 82 per cent of employees have voted in favour of industrial action short of a strike.

The drinks giant has also announced its plans to close its Diageo Lifestyle Plan to new employees and replace it with a new DC scheme.

Members of the GMB union also voted for industrial action over the pension scheme plans.

Diageo sites in Scotland, Northern Ireland and Cheshire could be affected by the plans.
Unite regional officer Pat McIlvogue said: “We are proud of our members, who have sent a clear message to Diageo that they must keep their pensions promises.

“No-one takes industrial action lightly – especially with Christmas coming up – but Diageo is behaving like Scrooge.

“This is a company that is rolling in cash. Diageo’s chief executive Ivan Menezes received £3.8m in total payments from the company in 2015 – including £424,000 in pension contributions. Its last reported profits were nearly £3bn. The company recently increased its dividend to shareholders by 5 per cent.

“This is corporate avarice on a scale that even Charles Dickens couldn’t imagine. But this isn’t the Victorian era, and our members will stand together in the face of this corporate greed. We will support them to make sure they get fairness and their promised pension rewards.”

Unite Scottish secretary Pat Rafferty said the union would work to encourage politicians to support Diageo staff.

“The UK is on course to be the most unequal and unfair country in the developed world. That’s because for decades now, workers have been getting less and less, while shareholders and fat cat executives have been getting more and more,” Rafferty said.

“Unite members at Diageo are taking a stand - and as a country, we need to stand with them. We will be calling on every MP and MSP for their support. It’s a clear choice between the values of fairness and greed.”

GMB Scotland organiser Louise Gilmour added: "It’s another example of the obscene disparity between executive pay and the ordinary worker and if there is one company that can most certainly afford to sustain decent pension arrangements for its workers then it’s Diageo.

"It’s a question of fairness and Diageo can clearly go further to protect the pensions of their workers.”

Pensions Age has contacted Diageo for a comment but it is yet to respond.

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