How Can the Diageo Workers Save Their
Jobs?
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The campaign to save the
livelihoods of workers at the Diageo Bottling plant in
Kilmarnock and the Port Dundas distillery continues but
it is not clear where it is going, or even what it is.
The media, as usual, only serves to exacerbate and
highlight the confusion. While the workers,
along with 20,000 others, families, friends and activists
protested and showed their genuine determination to
fight, those claiming to have the answers only serve to
confuse the issues. |
The Scottish Government waded in with
fighting talk and the promise of financial aid to pay
for the jobs with the bosses at Diageo merely waiting to see how
much. The Trade Unions, Unite and GMB, started a web site
where people could sign an on-line petition and announced that
they will organise further protests, all to try and get Diageo
to think again, a strategy some might describe as a
gonnae no dae that? kind of strategy. Even the
chairman of Kilmarnock Football Club declared, Kilmarnock
FC will support the employees whose jobs are under threat.
He didnt say how exactly but that is no less effective than
the promises of any of the political parties. Scottish
Enterprise, who have basically led the campaign, commissioned
consultants to come up with an Alternative Business
Plan (at extremely short notice). But it was somewhat
scuppered by the consultants declaring that it doesnt
really matter where a company plants its business and that
Diageos plans make sound business sense.
Well, why should we be surprised that
financial consultants happen to agree with other financial
consultants, when they are faced with the same problem and
particularly without the time to make a proper study of all the
issues?
East Ayrshire Council has now waded in and
declared that the consultants have got it wrong and they will
produce all the evidence needed to convince Diageo that their
plans are mistaken and they should remain in Kilmarnock after
all. Well, I hope to goodness they are right, but somehow I
dont really see the Diageo executives throwing their hands
up in the air saying, Oh, now we see where we went
wrong!! Not unless it comes with a hefty financial
sweetener an offer they cant refuse, so to speak.
The whole campaign seems to hinge on the
historic links between Johnnie Walker and Kilmarnock and
thats what makes the consultants report so damaging.
It leaves the campaigners with a problem of where to focus the
campaign, unless they want to continue the time honoured
tradition in the Labour and TU Movement of flogging dead horses.
How many times have we seen campaigns of this nature tried? Or,
to make it easier on the memory, how many have been successful?
| Diageo is the
largest multinational beer, wine and spirits company in
the world holding brands such as Guinness, Red Stripe,
Harp Lager, Johnnie Walker, Bells, Black &
White, Vat 69, Talisker, Lagavulin, Smirnoff,
Gordons, Captain Morgan, Seagrams, Bushmills,
Jose Cuervo, Archers, Pimms, Baileys, Sterling
Vineyards, Piat dOr, Barton & Guestier, Blossom
Hill and on and on. They are not short of a bob or
two. In 2008 the revenue was £10,643 million, with
a net income of £1,597 million and profits of £2,226
million. They have 22,000 employees worldwide. The
Chief Executive Officer, Paul Walsh, was paid £5 million
despite the company being hit by a 7% drop in the first 3
months of 2009. Like most (if not all) other
multinational companies based in Britain, Diageo dodges
paying the proper level of tax, paying just £43 million
per year corporation tax, saving £100 million. Yet
the reason they give for the job cuts is to ensure the
company remains sustainable. Honestly!!?? |
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There is a clear moral case for
Diageo remaining loyal to the Kilmarnock workforce but that cuts
no ice with todays multinational executives who are keen to
impress the shareholders. Its all about hard cash and
the quest for profit.
What does the left propose? Many left
writers will tell you that the socialist solution would be for
mass demonstrations, a sit-in, even a riot or two. That is
the traditional method but come on, have we learned nothing from
the Miners Strike? The miners in 1983 thought they could
adopt the kind of tactics they had in 1972 and 74 and,
because they worked then, they should work now. Well, they
got that tragically wrong. What did I say about
flogging dead horses? There is certainly a place for
sit-ins and demonstrations but that can only be as part of a
bigger, wider campaign, one which has the clear goal of taking
the plant into joint Scottish Government and community ownership.
I do not believe the TU leaders or political leaders have the
stomach for such a clear and radical call, but that should not
prevent us from raising it.
The Diageo plant in Levenmouth had been
promised over 300 jobs (most reports say 400) before the
announcement of the closures, but Diageo executives must have
known. Workers there along with local politicians have
stated their support for the workers in East Ayrshire and that
must be heartening for the workers there. However
Levenmouth has one of the highest levels of unemployment and
associated deprivation in Scotland, with poverty levels second
only to one or two areas in Glasgow. The promise of so many
jobs to an area like that is like gold dust which would boost the
local economy, and that might colour attitudes in the area
if either Diageo or the politicians are allowed to successfully
play one group of workers against the other. If the Kilmarnock
campaign does escalate into all-out strike and occupation it
needs to be on the basis of a clear call to defend all Scottish
jobs.
Diageo have said that the withdrawal from
Kilmarnock would be over a two year period, still time to build a
meaningful campaign, but also that they would leave a legacy to
the people of Kilmarnock. Perhaps, therein lies the answer.
Let them leave the bottling plant to the
workers in Kilmarnock and the distillery to the people of Port
Dundas, and let them get on with it. After all, its
the workers and local management who run the plants and make them
profitable for the executives to take the credit and the
money. If the Scottish Government genuinely wants to retain
the jobs then they should keep the £75 million they are
reportedly going to offer Diageo to bribe them, and
instead invest it to develop community ownership and control of
the plants. Consultants could draw up a feasibility study
and could offer options, working with the workforce, the Scottish
Executive and the community to produce a viable plan. This time
they would have at least a year in which to do it.
This is a strategy which has actually
succeeded in other instances and other communities and, in my
opinion, is the best option for the workforce and those who back
them to campaign around.
Jock Penman