First Minister Alex Salmond was yesterday accused of being "part of the problem" in the lead-up to Diageo’s confirmation that it will close two of its plants with the loss of 900 jobs in Kilmarnock and Glasgow.
Scottish Labour leader Iain Gray claimed there had been widespread criticism of Mr Salmond for "megaphone diplomacy, for grandstanding and for choosing a TV appearance over a meeting with Diageo’s chief executive" during the unsuccessful campaign to save the Johnnie Walker whisky bottling plant in Ayrshire along with the Port Dundas grain distillery.
His comments followed the company’s dismissal on Wednesday of the rescue plan drawn up by the government-led taskforce.
Diageo said the group’s proposals had failed to address "basic economics," provided a poor business model that failed to understand the marketplace or how the proposals to save the jobs would be funded.
Mr Gray took the criticism further when he asked during First Minister’s Questions at Holyrood if Mr Salmond was "part of the problem, not the solution?"
The "megaphone diplomacy" attack was a reference to Mr Salmond’s attendance at a march and rally against the closures, held in Kilmarnock in July.
The First Minister replied: "I am proud of my attendance at the rally, I’m proud of the workers and council and unions and all parties who attended that rally.
"Not only will I never apologise for standing shoulder to shoulder with a workforce in their time of extremity, I am proud of a country and a community that cares enough about their company and their product to rally in defence of jobs in Scotland."
Mr Gray said the campaign was not lost in the rally but in the negotiations. He claimed talks had been compromised by Mr Salmond’s "choice to go to a TV studio" rather than attend a meeting with Diageo chief executive Paul Walsh.
Mr Salmond attacked the drinks giant over its closure plans, warning the company could not "just walk away" from the consequences of its actions.
He told MSPs: "Diageo as a company have been focused on what they save in terms of cost, on what they can maximise in terms of profit.
"I believe there has been little or no focus, until late, in terms of the social consequences of their economic decision-making.
"Part of the remedial action that has to be taken by the taskforce and government and public agencies is to focus the company’s minds -- that they cannot just walk away from communities, that there is a social cost."
Scottish Tory leader Annabel Goldie warned that Mr Salmond was in danger of sending out a message that Scotland was "hostile to business".
She said: "These are difficult economic times in Scotland and we do not need a First Minister scaring away businesses by having a square go at companies every time they make a difficult decision."
Finance Secretary John Swinney, who headed the negotiations with Diageo, said the gap between the government-led taskforce’s proposals and the company’s plans was between £3m and £4m before taking into account public sector support while the cost to the public purse of the closure would now be £14m a year.
With closure now certain, he said: "I don’t think it’s an unreasonable proposition to say to the company you have a corporate social responsibility to protect communities that have served you well."
GMB Scotland secretary Harry Donaldson met Diageo management for talks yesterday on issues which he said were of "joint concern". Further discussions will follow next week.
Meanwhile, a possible management buy-out has been raised with Mr Swinney for the Bausch and Lomb contact lens factory in Livingston where 500 jobs are under threat. The proposal was put to the Finance Secretary by Labour MSPs George Foulkes and Mary Mulligan.
Lord Foulkes said Mr Swinney had agreed Scottish Enterprise would look at the option of a buy-out or a takeover by another company."
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