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Diageo faces workers' strike in Scotland

One of Diageo PLC's biggest labor unions in Scotland threatened to go on strike following the collapse of wage increase talks, Reuters reported Aug. 16.

Unite reportedly said that 500 of its members in the alcoholic-beverage maker's Cameron Bridge, Leven and Shieldhall sites have expressed support for the industrial action, threatening the Johnnie Walker whiskey-maker's production. The proposed strike is expected to begin in September and last until November, Reuters reported.

The strike was called after Unite and another union, GMB, rejected the company's 2.8% pay increase offer in July.

Unite regional industrial officer Bob MacGregor reportedly urged Diageo to return to the negotiating table with a new offer that fairly rewards its workers. "If they do not, then Diageo's operations will needlessly grind to a halt in the coming weeks," MacGregor reportedly added.

A Diageo spokesperson told the news outlet that contingency plans are in place in case of industrial action although it remained committed to seeking a resolution.

Unite did not immediately respond to S&P Global Market Intelligence's request for comment.