Johnnie Walker Distillery Workers Threaten Strike Amid Potential Mass Layoffs

(Photo: Igor Golovniov / SOPA Images/Sipa USA)(Sipa via AP Images)

Workers at the Cameronbridge Distillery in Fife, Scotland, are scheduled to vote on a strike ballot following a dispute over potential layoffs at the Diageo-owned facility.

According to Unite the Strike, British alcohol conglomerate Diageo recently announced plans to slash hundreds of jobs across Scotland as part of its global restructuring initiative. The union estimates that over 70 jobs are under review at the Cameronbridge distillery alone. Organizers claim that neither staff nor union members were consulted on the proposed cuts, adding that the move will put members’ wellbeing at risk because Diageo reportedly plans to maintain the same level of production.

Cameronbridge is Europe’s largest grain distillery, producing around 110 million liters of pure alcohol per year. Its approximately 200 workers provide the core whisky base for popular blends like Johnnie Walker, J&B, Bell’s and Black & White, which are produced alongside white spirits like Smirnoff, Tanqueray and Gordon’s Gin.

“Diageo is treating its hard working and loyal workforce in an appalling manner,” Unite general secretary Sharon Graham remarked in a public statement. “The company is extremely wealthy and there is simply no reason to slash jobs across its operations. If Diageo continue down this callous path, then they will be met with the full force of Unite.”

The ballot will remain open for voting from now until Sept. 9. If the ballot passes, strike action could begin for over 100 union members by mid-September.

In a statement seen by The Spirits Business, Diageo maintained that its layoffs will only result in the loss of up to 12 jobs at Cameronbridge, adding that the company is confident it can find alternative roles for anybody who’d like one.

“We are in consultation with colleagues on proposed changes at Cameronbridge Distillery, which would see a small reduction in roles. While difficult, this follows the decision to maintain reduced production volumes to protect the long-term competitiveness of our business,” the spokesperson said. “We are committed to engaging constructively and in good faith with the trade unions, and we will continue to support all colleagues during this process.”

The dispute follows the unveiling of a sweeping three-year restructuring plan aimed at cutting approximately $1 billion in costs for the drinks giant. Shortly after the news was announced, Scotland’s The Press & Journal reported that 172 workers across Diageo’s Highlands and Islands operations had been placed at risk of redundancy, with up to 38 positions expected to be cut.

The British conglomerate is responsible for myriad bestsellers inside and outside of Scotland, including Guinness, Casamigos, Don Julio, Captain Morgan and Baileys.

The restructuring comes as Diageo faces slowing demand across segments of the beverage industry. The company has pursued a string of sell-offs and cutbacks over the past year, halting whisky production at its Balcones and George Dickel distilleries, shuttering a visitor center for Ryan Reynolds’ Aviation Gin and closing a prominent manufacturing plant in Hyderabad, India.