Diageo job cuts could cost economy £15m

The closure of the Johnnie Walker bottling plant in Kilmarnock could cost the local economy £15m a year, the Scottish finance minister has warned.

John Swinney said the decision to close the plant with the loss of 700 jobs could be "devastating" for the local area. A further 200 jobs are to be cut at the grain distillery in Port Dundas at a cost of over £9m in list wages and public spending.

"900 job losses in the west of Scotland in the current economic climate represents a body blow, not only to individuals affected but to the wider community and local economies," he said.

However, Diageo chief executive Paul Walsh recently said that he would not put the other 4,000 jobs in Scotland at risk to keep either the Kilmarnock plant or the grain distillery in Port Dundas open. In addition, 400 jobs are being created in Fife as part of its restructure.

A Diageo spokesman said: "Our overall priority remains the ongoing consultation with our employees and supporting them during this difficult time."

The news came as Diageo workers held a protest outside the Scottish Parliament yesterday. Unite's deputy Scottish secretary Jackson Cullinane, said: "We've had people the length and breadth of the country contact us, outraged by Diageo's betrayal of Scotland.

"It is a mark of how deeply these restructuring plans have shaken Scotland that our legislators are to put them under the spotlight.

"We will be saying clearly to MSPs that these proposals do not stand up to scrutiny — and we know that they won't be fooled by them either.

"Diageo pocketed in over £2 billion in pure profit this year, and the same again last year, so these changes are in no way about saving a company on its knees."