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Whisky staff facing 100 job cuts | |
(about 3 hours later) | |
Whisky producer Whyte & Mackay has confirmed plans to cut dozens of jobs at sites across Scotland. | |
Up to 85 posts will be lost, with another 15 overseas sales staff facing the axe. A month-long consultation and review of operations is under way. | |
Whyte and Mackay has plants in the west of Scotland, Highlands and Grangemouth, but no site is facing closure. The firm blamed the economic downturn. | |
The GMB union said the move was "bitterly disappointing". | |
The cuts come just weeks after drinks giant Diageo said it was cutting 900 whisky jobs. | |
Indian billionaire Vijay Mallya bought Whyte & Mackay in a £595m ($1.2bn) deal in May 2007, posting pre-tax profits of £25.6m for the 18 months to the end of March last year. | Indian billionaire Vijay Mallya bought Whyte & Mackay in a £595m ($1.2bn) deal in May 2007, posting pre-tax profits of £25.6m for the 18 months to the end of March last year. |
A combination of the worldwide economic situation and the punitive UK legislative climate means that only the fittest alcoholic drink companies will survive John BeardWhyte & Mackay chief executive | |
The firm currently employs 574 people across its seven sites in Scotland, including its Glasgow city centre headquarters, the Invergordon Distillery and its bottling factory in Grangemouth. | |
The GMB's Harry Donaldson told BBC Radio Scotland's Good Morning Scotland programme it was "bitterly disappointing" news for the workforce. | |
He said: "I think it's time that we have a whisky summit in terms of what does this really mean for Scotland and jobs based in Scotland. | |
"I think we need to involve the Scotch Whisky Association, the employers themselves and the politicians - along with the trade unions." | "I think we need to involve the Scotch Whisky Association, the employers themselves and the politicians - along with the trade unions." |
Downturn blamed | |
Whyte & Mackay said it had begun a month-long review and would look at ways of minimising compulsory redundancies. | |
Over the past week it has also held meetings with Scottish Government ministers and officials, including First Minister Alex Salmond. | |
The firm's key brands are Whyte & Mackay, Isle of Jura and Dalmore malts, Vladivar vodka and Glayva liqueur. | |
The company is handling a difficult situation in a socially responsible manner Jim MatherEnterprise Minister | |
Chief executive John Beard said: "It will come as no surprise to anybody that a combination of the worldwide economic situation and the punitive UK legislative climate means that only the fittest alcoholic drink companies will survive. | |
"For Whyte & Mackay this means taking the painful decision to review our structures and costs." | |
Enterprise Minister Jim Mather said it was clearly an anxious time for staff. | |
He said: "The company is handling a difficult situation in a socially responsible manner and is clear that it is not closing any of its operations around Scotland. | |
"I welcome the fact that it remains deeply committed to its Glasgow head office and that it has strong prospects for the future, especially as regards long-term sales growth in new markets such as India." | |
He said the company had assured the government it was doing everything it could to avoid compulsory redundancies. | |
Scottish Tory leader Annabel Goldie urged ministers to rethink planned legislation on alcohol. | |
She said: "Scottish Government plans for minimum pricing are going to make the situation very much worse. Many more jobs in the industry will be at risk." | |
The call was echoed by the Liberal Democrats, with chief whip Mike Rumbles warning the government to be "serious about supporting our national drink". |