Salmond's 'provocative' approach to Diageo cuts slated by business chiefs

FIRST Minister Alex Salmond is facing a growing backlash from business leaders over his high-profile attempt to persuade Diageo not to axe 900 jobs in Kilmarnock and Glasgow.

Institute of Directors Scottish director David Watt accused senior politicians of taking a "knee-jerk" and "random" approach to the company's decision to shed 700 jobs at its Johnnie Walker bottling plant in Kilmarnock and 200 at its Port Dundas distillery in Glasgow.

He suggested it would be difficult for Mr Salmond to negotiate with Diageo after he spoke at a weekend rally of 20,000 people protesting at the job cuts.

The First Minister has been discussing alternative business cases with Diageo chief executive Paul Walsh.

Mr Watt said: "Everything should be done to avoid job losses and to look for replacements. But finding replacements will not be helped by protesting by senior politicians making a lot of provocative speeches. How does that help Diageo as a company?

"How does Alex Salmond sit down with Paul Walsh and have a reasonable discussion having been out on the streets and having made rallying speeches?

"A slightly more diplomatic approach would have been helpful," he said.

"Anything that creates the impression that Scotland is not friendly towards business is genuinely damaging. I think there is a major issue about how we replace these businesses, and I'm not sure that senior politicians marching in the streets is going to replace that industry.

"That is not creating an atmosphere that would encourage people to invest. It is a disincentive. To have an atmosphere where senior political figures are marching against international companies is a bit of a concern.

"It is not as if Diageo is abandoning Scotland – far from it. We are getting a significant number of jobs going from the financial services industry, but we haven't seen senior politicians camping outside their offices."

Mr Watt made his remarks the day after CBI Scotland director Iain McMillan claimed politicians' behaviour might discourage foreign companies from investing in Scotland.

Yesterday, Campbell Evans, of the Scotch Whisky Association, said the drinks industry had privately voiced similar worries.

He said: "Whisky firms have expressed concern at the climate for doing business when such statements are made about investment decisions.

"That's not to say we don't have sympathies with those who are losing their jobs. But it is interesting that it is now not just whisky people who are saying this."

At the rally, Mr Salmond sent a message to "London boardrooms" saying: "Let's have no more nonsense from anyone that these proposals are in any way socially acceptable to the people of Scotland."

In addition to the cuts in Kilmarnock and Port Dundas, Diageo has said it will create 400 jobs at its packaging plant in Fife. It intends investing 87 million in a new plant in Leven, plus 9m in a cooperage in Cambuslang. It says the proposals will save the company about 20m a year from 2011. The investment has been welcomed in Fife.

Last night, a Scottish Government spokesman said: "

Diageo's proposals have potentially devastating implications for communities in Kilmarnock and Glasgow. Working with local authorities, trades unions and local representatives, the government and Scottish Enterprise believe that an alternative proposal can be made that not only works for the company, but is in Scotland's best interests.

"Far from telling Diageo how to run their business, we are working with their support to develop an alternative proposal that will safeguard these jobs."

FANS' SUPPORT

HUNDREDS of football fans were last night urged to back a campaign to safeguard hundreds of whisky jobs in Scotland at a pre-season friendly match.

Supporters of Kilmarnock and Partick Thistle were asked to support the campaign against Diageo's plans to cut 900 jobs.

About 700 workers are set to lose their job at the Johnnie Walker bottling plant in the Ayrshire town, with another 200 at the Port Dundas Distillery in Glasgow, near Thistle's Firhill ground, under threat.

SNP MSP for Kilmarnock and Loudoun Willie Coffey collected names for a petition outside Kilmarnock's Rugby Park stadium before the game.

The online petition already has more than 11,000 names and,

later, a spokesman for Mr Coffey said more than 200 football fans had added their names at the match.