GLOBAL DRINKS giant Diageo is seeking 107 redundancies in Ireland as part of a £100 million global cost-reduction plan. Twelve of the posts will go in Northern Ireland, with the balance due to be cut from its operations in Dublin.
Staff were informed of the decision yesterday, with the reductions focused on support functions – including finance and human resources – sales and marketing.
Diageo employs more than 2,000 people in Ireland, including those at breweries in Dundalk, Kilkenny, Waterford and its landmark St James’s Gate facility in Dublin.
A hearing at the Labour Relation Court has been scheduled for tomorrow, at which Diageo and the Guinness Staff Union will present their cases.
Commenting on the decision, Diageo Ireland chairman Brian Duffy said: “Today’s announcement to reduce employment was extremely hard to make and follows months of careful analysis and consideration. The decisions taken today are the necessary steps to maintain a sustainable competitive business in Ireland.”
Diageo said its intention was “that as many as possible of these redundancies will be achieved through a voluntary programme over the next three months”.
Seán Mackell, general secretary of the Guinness Staff Union, said it would submit its own proposals to the LRC in an effort to minimise job losses, and it would also seek to ensure that any redundancies were on a voluntary basis.
“We will be going through every single suggestion that they have put forward,” Mr Mackell said. “We want to save as many jobs as possible. We will also be keen to put a severance arrangement in place for those [staff] willing to depart the company.”
Mr Mackell said Diageo was a profitable company and he did accept that so many redundancies were necessary.
In 2008 Diageo’s operating profit increased by £191 million year-on-year to £682 million.
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