Union say Diageo 'betrayed' workers by withholding share
Unite are hitting out at the drinks firm who made profits of £2.1bn in 2020
Diageo are under fire as employees will not receive a share based on company performance.
The drinks firm say the threshold for this year’s free shares award for UK employees had not been met due to the challenges from the COVID-19 outbreak.
However, trade union Unite Scotland say this is unacceptable as Diageo announced a profit of £2.1 billion for the year ending June 30th 2020.
The number of shares awarded depends on Diageo's profits. Unite tells us that last year's shares were around 8% which equated to around £3000.
The trade union say Diageo should be following in the footsteps of other firms Edrington and Chivas Regal.
Unite regional coordinating officer, Elaine Dougall said: 'Unite’s members at Diageo feel utterly betrayed by the company in light of their efforts to keep the business operating during the Covid-19 pandemic.
'We recognise that like all company profits there has been a significant drop but other companies in the drinks industry such as Edrington and Chivas Regal have recognised the contribution of their workers by granting additional annual leave or through a financial award.
'Let’s remember that Diageo still made a £2.1 billion profit and it has paid out its share dividend, yet it refuses to reward the workforce who delivered this access to the company’s Freeshare scheme.'
Diageo say challenges from the coronavirus pandemic have proved costly.
A Diageo spokesperson said: 'We greatly appreciate the support of all our people during these challenging times. The outbreak of COVID-19 has presented significant challenges for our business, impacting our full year performance.
'As a result, the threshold for this year’s free shares award for UK employees has not been met. Employees that elected to receive free shares in prior years and still hold them, will benefit from the final recommended dividend payment announced this week.
'In addition to this, Scottish unionised employees received a pay increase from 1 July as per the 2019 Union agreement'.