Chivas Brothers’ Strike Looms Over Pay Dispute Amid Record Profits and Sales Surge
The Eye-Watering Profits vs. Pay Offer Disparity
Following a year of remarkable profit, Chivas Brothers, the Scotch whisky division of the French conglomerate Pernod Ricard, faces potential strike action. The company’s proposal for a 6.4% wage increase fell short of expectations, especially considering its significant tax profits. Employees have warned of strike action unless there is a substantial improvement in the offer.
In August, Chivas Brothers reported a sales increase of 17% for the period from July 2022 to June 2023, hitting a decade high.
Unite’s Strong Stance
Sharon Graham, General Secretary at Unite, expressed dissatisfaction: “Chivas Brothers has made staggering profits and can afford a better offer. Their reluctance to make a fair offer highlights a preference for profits over people. Unite fully backs the workers at Chivas in their quest for fair compensation.”
Planned strikes, involving a series of 24-hour stoppages at various facilities, are scheduled from December 11 to 14. Additionally, bans on overtime and short-notice shifts will commence from December 11.
A staggering 97% of Unite members voted against the new salary proposal in October. Subsequently, 91.2% of voters in a ballot, with 60% member participation, supported the planned strike.
Andrew Brown, Unite Industrial Officer, warned: “Without an improved pay offer, strike action is inevitable. The imminent industrial action will significantly impact Chivas Brothers’ ability to distribute their premier brands during the festive season.”
GMB Members Joining the Strike
Members of GMB Scotland at Chivas Brothers will also participate in the strike, affecting 21 sites. This includes workers in the Highlands who will strike on December 12 at key distilleries like Aberlour, Glenlivet, and Strathisla.
David Hume, GMB Scotland Organiser, emphasized the workforce’s refusal to accept a de facto pay cut amidst soaring profits and record sales, demanding an offer that acknowledges their contribution.
Company Profile and Response
Chivas Brothers, employing around 1,600 staff across Scottish distilleries like Kilmalid and The Glenlivet, remains firm on its pay proposal, claiming it exceeds the CPI and CPIH inflation average over the past two years.
Despite acknowledging the planned strikes, Chivas Brothers asserts there will be “no impact” on year-end orders, citing robust business continuity plans.
