Pay: GMB and Unite win 10% pay deal at Diageo

GMB and Unite members at Diageo, the world’s biggest spirits company, have accepted a 10.3% pay deal after rejecting an initial offer of 6.8%. The deal will cover about 3,000 workers.

The deal is split into two parts with an 8% increase running from July until January 2025, and then a top up worth around 2.3% will be added until July next year.

Diageo produces high-profile brands including Johnnie Walker, Smirnoff, Baileys and Guinness, and runs distilleries and bottling plants across Scotland including Cameron Bridge, Leven and Shieldhall. The company reported £4.5 billion in profits in June.

Commenting on the deal, Unite industrial officer Bob MacGregor said: “We believe this deal, which was overwhelmingly backed by our membership, will set a benchmark for the rest of the drinks industry in Scotland.”

Craft engineers at Diageo went on strike last year over the introduction of a lower rate of pay for new starters, with no consultation.

Elsewhere in private sector pay deals, Unite secured a two-year deal worth 8% for Alvance aluminium workers in Lochaber. Workers at Hargreaves Industrial Services who pack and load ammonium nitrate fertiliser secured a 21.2% pay deal backdated to April 2024. The deal was the first since Unite signed a recognition agreement in June 2023, and came after a week of strikes had been announced.