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DEO News DJ UK Union Challenges Diageo To Justify Scottish Job Cuts

Friday, July 3, 2009 11:52 AM

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News for 'DEO' - (DJ UK Union Challenges Diageo To Justify Scottish Job Cuts)

LONDON (Dow Jones)--The U.K.'s largest labor union said Friday it wants Diageo PLC (DEO) to justify what it called "swingeing" cuts at its U.K. operations.

The maker of Johnnie Walker scotch, Guinness stout and Smirnoff vodka, said Wednesday it will cut 900 of its 4,500 Scottish workforce.

The Unite union said it wants Diageo to produce a "detailed financial audit of its trading performance" in order to justify the move.

"Diageo's cuts will devastate these communities, so the very least they owe these loyal workers is a proper explanation of why they are to be thrown on the scrapheap," said Unite's Jim Winter. "We want a full, independent audit of Diageo's figures because we believe the company doesn't need to pursue such drastic action and we fully intend to fight to defend these jobs.

Diageo said Wednesday the move, which includes the closure of a packaging plant, a distillery and a cooperage, will save GBP40 million a year from 2012.

Union Web site: www.unitetheunion.com

-London bureau, Dow Jones Newswires; [phone]; [e-mail]

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(END) Dow Jones Newswires

July 03, 2009 11:51 ET (15:51 GMT)

Copyright (c) 2009 Dow Jones & Company, Inc.- - 11 51 AM EDT 07-03-09

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