Labour Research October 2009

News

Union anger grows over job losses

Job losses at drinks giant Diageo, the closure threat hanging over the Corus steel plant in Teesside, and plans for offshore outsourcing at National Grid in Newcastle continue to provoke opposition from trade unions.

Union anger is likely to grow further if jobs at car manufacturer Vauxhall are threatened by the recent sale of parent company GM’s European business to the Canadian company Magna. General union Unite has warned that, despite the sale, uncertainty over the long-term future of plants in the UK remains.

The threat to 900 whisky industry jobs in Scotland became graver last month following Diageo’s rejection of an alternative plan, drawn up by public authorities and the trade unions. The company plans to close its Kilmarnock packaging plant and Port Dundas grain distilliery while expanding operations in Fife.

Instead the town faces a closure which, finance minister John Swinney has warned, will cost the local economy over £15 million a year (with every job lost costing the public sector at least £10,000). Rejection came even before the end of the 90-day statutory consultation process, adding to the unions’ anger.

Jennie Formby, Unite national officer, warned of a continuing fight to save jobs: “We have 100 per cent unity among the workforce across every Scottish site, from Kilmarnock to Leven, and our anger is tangible.”