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Swinney vows to reverse Diageo redundancy plan

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Published Date: 03 July 2009
THE battle to save 900 whisky jobs today intensified with a vow by a senior minister to get the decision reversed.
Finance Secretary John Swinney made the pledge after visiting Kilmarnock where drinks giant Diageo plans to close the Johnnie Walker packaging plant with the loss of 700 jobs.

His comments came as the local football club also threw their weight be
hind the fight to save the jobs.

Mr Swinney said: "We are determined to put forward a cohesive argument and initiatives that provide for an alternative to the proposals that Diageo has set out.

"We want to ensure that the proposals put forward by Diageo are not implemented and that we change their minds."

Mr Swinney was speaking after meetings in Kilmarnock with Diageo, Scottish Enterprise, East Ayrshire council and local politicians.

The town's Labour MP, Des Browne, and SNP MSP Willie Coffey, were also involved in today's meetings.

The battle to save the Kilmarnock jobs opened up another front when the town's football club, along with Mr Coffey, launched a petition.

Kilmarnock Football Club chairman Michael Johnston said: "Diageo's decision to close the Johnnie Walker plant in Kilmarnock must be reversed.

"Kilmarnock Football Club will support the employees whose jobs are under threat and our local politicians in their campaign to keep Johnnie Walker in Kilmarnock where it was founded in 1820."

First Minister Alex Salmond has urged drinks giant Diageo to reconsider its plans, which will mean 900 workers losing their job through the Johnnie Walker closure and the closure of the Port Dundas grain distillery in Glasgow.

The job losses would, however, be partly offset by the creation of 400 jobs at a packaging plant in Fife.

Mr Swinney said the various organisations fighting the closure plan had agreed today to make use of financial information promised to them by Diageo.

"This was an issue raised by the First Minister with Paul Walsh, the chief executive of Diageo, in their discussions since the announcement was made, during which the company promised to engage in a genuine consultation as they move forward," he said.

The closure announcement led to a political spat between the First Minister and Mr Browne.

Mr Browne said Mr Salmond had been "snoozing on his watch" by only being aware of the Kilmarnock plan shortly before it was announced, a charge denied by the First Minister who said Diageo did not tell the Government of its plans during earlier meetings.

Tory shadow Scots Secretary David Mundell today attacked the "petty war of words".

"It's time to stop the blame game about who knew what and when", he said.

"The truth is that both Labour and the SNP parliamentarians knew about the review in March but neither the UK Government nor the Scottish Government appears to have done anything about it."

Meanwhile Labour appealed for the proposed Port Dundas closure not to be overlooked.

The grain distillery is in Glasgow North East, where a by-election is due after Speaker Michael Martin resigned.

Glasgow MSP Patricia Ferguson said: "What is happening in Ayrshire is disastrous but we cannot allow the fate of Diageo's staff in Glasgow to be forgotten.

"Diageo's review threatens 150 local jobs, including highly skilled coopers.

"We need to know why the SNP failed to even try to influence that review but we also need them to protect the staff and the families."



Page 1 of 1

 
1

Wolf of Badenoch,

03/07/2009 17:38:39
Diageo themselves also appear to think the talks are positive.

"Talks between Diageo and Scotland's first minister Alex Salmond over the drinks giant's proposal to cut 10% of its workforce in the country have been constructive, the firm said."

http://www.just-drinks.com/article.aspx?id=97723

It would appear Alex Salmond is again putting Scotland's needs above all others as his top priority and in the words of Lord Foulkes I suspect he is doing it deliberately. For Labour to attempt to turn this in a political boxing match is beneath contempt.

2

DougL,

Glasgow 03/07/2009 18:28:34
Having just returned from today's meeting at Rugby Park, I can happily say everyone can be heartened by the local determination on this. There is a petition on the Kilmarnock FC website (www.kilmarnockfc.co.uk).
3

bumpkin,

03/07/2009 19:45:49
setting a minimum price for alchohol will actually help diageo, as much of its production is sold to supermarkets at a loss, in common with many other suppliers.
4

Ewen Miler,

Wilts 03/07/2009 20:23:13
#5

Considering the damage alcohol does: health and social; I think the SNP policy is a good one. I hope the rest of the Uk follow suit.

Having said that; I hope Diageo can be made to change their minds - seems the politicians are actually trying to do something, if a little late.
5

Observer,,

Glasgow 03/07/2009 20:50:59
''What we need is the SNP setting maximum prices'' I don't think you can actually do that. This isn't the Soviet Union you know.

6

rpb,

03/07/2009 21:10:09
I thought the SNP hated alcohol consumers and wanted to dictate to fellow scottish wasters by setting price controls....one would have thought swinney, salmond et al would be delighted if alcohol companies would shut down their scottish operations, giventheir apparent anti-alcohol rhetoric.
Close all distilleries now!

Mind you...if I lived in some the dumps that pass for towns in blighted urban scotland - where its dark for half the year, and rains throughout every month - i would want cheap booze to forget where i lived also

7

Electric Hermit,

03/07/2009 22:31:49
8
rpb

I suspect your neighbours might need a little something to ease the pain.
8

spook007,

Fife 04/07/2009 20:19:00
It's great that the scottish government are looking to stick their oar into a private company's business. What happens if they get Diageo to reverse their decision and decide to make the job cuts elsewhere, are they going to stick their oars into that as well. Where were the government when thousands of banking staff were axed recently. OH that's right they were hiding out of sight because they caused the problem that time round. Keep your noses out of the private sector, how can you possibly come up with new financial and personnel proposals WHEN YOU CAN'T EVEN FILL OUT YOUR OWN EXPENSES FORMS WITHOUT LYING.

 

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Today's Vote

Should the government intervene to try to save the Bausch & Lomb plant?
Yes, if it’s good enough for Diageo why not here?
No, you can’t change the mind of multinational firms
No, firms are bound to struggle in times like these

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