BRITISH beverages company Diageo said it has reached an agreement with unions Unite and GMB on the pay hike for its staff members.
The agreement on Tuesday (17) came on the eve of a strike action called by both unions earlier this month after the collapse of pay talks last month.
The strike has been suspended after the business agreed for a two-year deal, with a three per cent increase in the first year, an increase in line with retail price index, and a commitment to put in place a performance-based incentive bonus in the second year.
Keir Greenaway of GMB and Stevie Deans of Unite in a joint statement said: “We are pleased that on the brink of strike action, Diageo tabled an offer that we feel merits our members’ consultation.
“Our strike action is now suspended while a full consultative ballot of our members takes place on the offer.”
The deal also includes a time frame for the negotiation of a new collective agreement for future years.
Diageo spokesperson said: “We are pleased to have reached an agreement on a good, fair offer that ensures our employees can receive an increase on their pay while maintaining the competitiveness of our operations.”
Diageo earlier offered 2.8 per cent pay increase through the consolidation of the product allowance, which the unions rejected.
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