Dublin People - Mixed reaction to St James’s Gate plan

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Mixed reaction to St James’s Gate plan

Thursday, 15 May 2008

THERE has been a mixed reaction to Diageo’s plan to renovate its brewing operation at St James’s Gate in the south inner city and construct a new brewery in the Dublin area.
The brewing of Guinness is to continue at the world famous St James’s Gate plant but breweries in Kilkenny and Dundalk are to close under the new plan.
Diageo said it has decided to invest e650 million between 2009 and 2013 in the entire project which includes the renovation of the iconic plant at St James's Gate. However, the company has not yet confirmed where the new brewery will be situated in the capital.
According to the brewing giants, when the two Dublin breweries are fully operational in five years’ time, it plans to transfer operations there from the Kilkenny and Dundalk plants and close them.
The move will result in a reduction in staff of around 250, according to Diageo.
Under the new proposals part of the St James’s Gate site will be sold off. However, the Guinness Storehouse, which receives around 900,000 visitors a year, will continue to be based at St James’s Gate.
Paul Walsh, CEO of Diageo, said: “Over the last 12 months we have conducted a rigorous review of our brewing operations in Ireland.
“It examined many options and I believe it has identified the right formula for the long-term success of our business in Ireland and for the continued global success of the Guinness brand.”
There has been mixed reaction to the new plan from unions and local politicians.
Dublin South Central TD, Mary Upton (Lab), said the announcement of the major restructuring of Guinness brewing operations required close examination.
“Guinness has been a major employer in the area for generations and has had a presence there for almost 200 years,” said Deputy Upton.
“I welcome the fact that at least some of the company’s brewing activities are to be retained at St James’s Gate, but I will be looking for assurances that job losses among the local workforce will be kept to minimum.
“I am particularly anxious that if jobs are to go, that it be done on the basis of voluntary rather than compulsory redundancies.”
Bargaining
Deputy Upton added that she would be also be concerned that the consolidation of the brewery could result in parts of the site being sold off piecemeal to property developers.
John Dunne, SIPTU branch organiser, said his union would be adopting a centralised bargaining approach to changes at Guinness in consultation with other unions.
“By adopting a centralised bargaining approach all unions can maximise their negotiating power and we can also try and facilitate movement on staff between plants to minimise job losses,” he said.
Turlough O’Sullivan, director general of IBEC, warmly welcomed the e650 million capital investment plan announced by Diageo.
Mr O’Sullivan described the project as the biggest single investment in the history of the Irish food and drink sector and a massive vote of confidence in Ireland as a location for business and in Irish workers.
“The decision to keep production of Guinness at St James’s Gate shows Diageo’s dedication to inner city Dublin and the exciting plans to redevelop the area,” he said.
Guinness have traditionally been regarded as being good and fair employers in the south inner city.
The area is dotted with landmarks and buildings that pay tribute to Guinness’s philanthropy and social interaction with its employees.
The Iveagh Hostel located on Bride Road has been home, security and salvation to many in Dublin since 1905 while the Iveagh Trust provides housing at several locations in the south inner city including Kevin Street, Ross Road, Bride Street and Bull Alley.

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