Workers at a whisky giant are set to decide on strike action after talks over pay collapsed.
French-owned Chivas Brothers refused to revise a pay offer of 6.4% – despite recording its strongest financial year in a decade.
Members of GMB Scotland and sister unions are backing industrial action in consultative ballots. A formal vote will now take place.
The firm employs around 1,600 workers across Scotland including Miltonduff Distillery, near Elgin and Glentauchers Distillery, near Keith.
It is behind global brands including Chivas Regal, Glenlivet and Ballantine’s.
‘Unacceptable’ Chivas pay offer
GMB Scotland said 97% of members has backed strike action in the consultative ballot with a turnout just short of 100%.
David Hume, GMB Scotland organiser, believes the firm’s offer was unacceptable after reporting “unprecedented sales”.
He said: “Our members are being asked to accept a pay rise that is below the rate of inflation while reading how the owners are celebrating some of the highest sales ever recorded.
“Sales of the whisky made in Scotland are booming around the world. But the workers making it are told they must accept an effective pay cut in the middle of a cost of living crisis?”
The industrial action vote comes just weeks after the company reported a 17% increase in net sales.
The firm also announced a 30% sales surge in international markets including India, China and Japan.
Mr Hume added: “It is no surprise our members have refused that offer and are united in their determination to take the action necessary to secure an offer that fairly reflects the value of their work.”
Investment elsewhere
Chivas revealed intentions of opening its first production plant on the Hebridean island of Islay. The company is yet to set a date or choose a name.
However, it has revealed the new distillery will be located on “the picturesque site” of Gartbreck Farm.
The firm has also pledged to invest more than £60 million in heat recovery technologies and the installation of electric boiler across “viable” distilleries.
The investment is part of the company’s aim of being carbon neutral in distillation by the end of 2026.
Chivas also shared its secrets of its carbon-cutting success with rivals to help the Scotch whisky industry reach net-zero goals.
Chivas response
A Chivas Brothers spokesperson said: “Chivas Brothers prides itself on being a longstanding Scottish employer, committed to its people and the communities it calls home.
“We have, and will continue to, reward our people competitively, while responsibly managing our business for the years ahead.
“We firmly believe that our offer strikes the right balance between ensuring our salaries remain highly competitive in the context of a normalising business environment, and enabling us to build a successful and sustainable future, for the long-term – as evidenced by our recent investments in distillery expansions and decarbonisation, site safety and our communities across Scotland.”
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