Memorandum from the Scottish Trades Union
Congress
1. INTRODUCTION
1.1 The Scottish Trades Union Congress is
Scotland's trade union centre and exists to support the co-ordination,
development and articulation of the views and policies of the
trade union movement.
1.2 The STUC represents in excess of 630,000
working people in Scotland, the members of our affiliated trade
unions. Our affiliates have interests in all sectors of the economy
and across Scotland.
1.3 We welcome the opportunity to submit
views to the Scottish Affairs Committee as part of the on-going
Inquiry into the Drinks Industry in Scotland. The drinks industry
is a major contributor to the Scottish manufacturing economy.
It is responsible for creating and sustaining a great many jobs,
both directly and indirectly, and is of particular significance
in a number of fragile, more remote, areas.
1.4 STUC affiliates represent workers engaged
in the manufacture, processing and distribution of spirits, beer
and soft drinks, as well as those working in the related hospitality
and tourist sectors.
1.5 Relatively high levels of trade union
organisation among the main manufacturers and processors is reflected
in relatively well remunerated, increasingly highly skilled jobs
and in relatively good training and health and safety records.
1.6 However, the experience of those working
in the related service sectors is rather different. Notoriously
difficult to organise, in large measure due to the size and spread
of their workplaces, public house and other catering workers tend
to suffer low paid, insecure employment, with little access to
vocational training.
2. ECONOMIC SIGNIFICANCE
OF THE
DRINKS INDUSTRY
2.1 It is difficult to gauge precisely the
number of people dependant upon the drinks industry in Scotland
for their employment—definitions of the constituent parts
of the industry vary.
2.2 In the Pathfinder to the Parliament
initiative undertaken by the Scottish Office in the run up
to the establishment of the Scottish Parliament, the Drinks and
Hospitality Pathfinder Group concluded that the drinks and hospitality
sector (including spirits, beer and soft drinks manufacturing
together with the provision of hospitality via hotels, guest houses,
restaurants, public houses and catering) employs in excess of
200,000 people and generates sales revenues in excess of £4
billion per annum.
2.3 The recently published Scottish Enterprise
strategy document for the Food and Drink Industry, takes those
two sectors together and identifies them as employing 17 per cent
of Scotland's manufacturing workforce, with sales of £7.3
billion, 35 per cent of which is accounted for by whisky.
2.4 The whisky sector taken alone is estimated,
by the Scotch Whisky Association (SWA), to employ more than 11,000
people and to procure more than 70 per cent of its inputs locally,
thereby generating indirect employment for a further 30,000 people.
2.5 It is clear that which ever way you
define the industry it remains an important element of overall
economic activity in Scotland, contributing significantly to our
export performance and our international reputation as a manufacturer
of quality products.
2.6 That different organisations and groupings
chose to consider it in different contexts gives an indication
of the extent to which drinks production and distribution is linked
to other aspects of the economy.
2.7 However, the markets for soft and alcoholic
drinks, both at home and abroad, are relatively mature and, as
was concluded in the study of the whisky and spirits industry
in Scotland prepared for the STUC and the SWA in 1999[2],
the priority must be for all those with an interest in the industry
to work together to grow those markets and to ensure that companies
operating in Scotland and the Scottish workforce maintain a competitive
advantage.
2.8 Failure in these respects, in the context
of technological development and global industrial restructuring
will lead to an increasing pace of loss of direct and indirect
jobs, with significant consequences for local economic development.
3. PROMOTING
JOBS AND
GROWTH
3.1 Listed below, in bullet-point format,
are a number of recommendations for the Scottish Affairs Committee's
consideration. We look forward to developing these and other points
during our forthcoming oral evidence session:
— That the Committee add its backing
to calls for a review of the domestic tax treatment of spirits
which has discriminated against Scotch Whisky and allows other
governments to legitimise similar discrimination.
Whisky production involves particularly
lengthy lead times. Now that the sector is dominated by a small
number of large international spirits producers it is particularly
important for the future of Scotch Whisky that they are encouraged
to continue to make investment decisions which secure jobs in
Scotland.
— That the Committee add its backing
to calls for an end to discrimination against Scotch Whisky in
overseas markets.
— That Scottish and UK economic development
agencies work together to promote the products of the Scottish
drinks industry internationally and that Scottish and UK tourist
agencies maximise the opportunites arising from the availability
of quality Scottish products in their marketing strategies.
— That the trend to relocate white
spirit production and bottling in Scotland is encouraged along
with on-going investment in new plant and equipment and employee
development, with the full involvement of the appropriate trade
unions.
— That full consideration is given
to the public interest, including prospects for jobs, in the process
of approving merger and take-over activities within the industry
(mergers and takeovers have been a particular feature of the spirits,
brewing and hospitality sectors in recent times).
— That strategies are developed and
implemented to promote skilled, secure, adequately remunerated,
employment in the hospitality and tourism sectors—to improve
fairness at work, to maximise linkages between Scotland's producers
and the service sector to help build domestic sales, and to enhance
our international reputation.
— That the employment relations, health
and safety, training and investment approaches of the best employers
become the norm throughout the industry.
— That the Committee add its backing
to the call for workers in the UK to be afforded the same protections
at times of redundancy and company level restructuring as their
international counterparts.
STUC
January 2001
2 "The Scotch Whisky Industry-current performance
and future prospects-priorities for improvement", Spring
1999, Professor Mike Danson and Geoff Whittam, INSER. Back
|
