Pernod Ricard has finalized a compensation agreement with workers at its Chivas Brothers subsidiary after the Unite union threatened pre-Christmas strikes.
The Scotch whisky producer is implementing a 6.4% salary increase for its staff, starting from July, along with a one-time payment of £500 ($634). This agreement has been overwhelmingly accepted by the 500 members of Unite at Chivas Brothers.
In October, Chivas Brothers’ proposal for a 6.4% salary increase was declined by 97% of union members.
In addition to the one-time £500 payment, the recent agreement incorporates a second salary boost scheduled for July 2024, contingent on the average inflation over the preceding 12 months.
Unite industrial officer Andy Brown said, “Unite has delivered a significant improvement to the pay packets of our Chivas Brothers membership. The new two-year deal will help them cope with the ongoing cost of living crisis.
“We are pleased that we have negotiated an offer which has been overwhelmingly accepted by the membership bringing the dispute to an end.”
A Chivas Brothers spokesperson said, “We are pleased that following the latest ballot, employees covered by bargaining agreements have now voted to accept our revised proposal, which avoids unnecessary strike action.
“The new deal includes an acceptance of our original pay proposal and enhanced benefits, along with the security of a two-year agreement.
“We are looking forward to continuing to work closely with all our employees to deliver our main business objective, which is the continued supply of our world-renowned whiskies to consumers all over the world.”
The agreement comes after several weeks of negotiations that ensued following the announcement of strike action at the end of November.
Unite suspended scheduled industrial action on December 5th in response to an undisclosed pay proposal.
The planned strikes entailed a series of 24-hour stoppages scheduled between December 11th and 14th, accompanied by a prohibition on overtime and short-notice shifts.
Approximately 1,500 individuals are employed by Chivas Brothers in Scotland.
The union advocates for employees at Chivas Brothers’ Dumbuck warehouse and various distilleries situated in places such as Dalmuir, Beith, Strathclyde Grain, Kilmalid, and Strathisla.
In November, Brown conveyed that the union had consistently cautioned Chivas Brothers about the inevitability of strike action unless there was an enhancement in the current pay offer. Despite our members’ concerns, the company has not heeded the warnings, and now industrial action is imminent in a matter of weeks.
He added the strike would have “a major impact on the company’s ability to supply premier brands over the festive season”.
However, the Chivas Regal maker said at the time, “Considering the proximity to the festive season, and our business resilience plans, we are confident the planned action will have no impact on end-of-year orders, much of which has already shipped globally.”
Reporting its full-year financial results in August, Pernod Ricard posted a 10% rise in organic sales and an 11% increase in underlying operating profit for the year to the end of June.
Group net sales rose 13% to €12.14bn ($13.19bn). Profit from recurring operations was up 11% at €3.35bn. Net profit was 12% higher at €2.28bn.
