Diageo's West of Scotland workforce are being forced to come to terms with the news that they are to lose their jobs.

Management at the drinks firm met with staff this morning to confirm they will be pressing ahead with plans to close plants in Kilmarnock and Port Dundas. Bosses say the closures will be offset with the creation of 400 new jobs in Fife.

Management had been considering an alternative business proposal prepared by the Scottish Government, but this morning staff were told it had been rejected. The alternative plan would have seen a new plant created in Kilmarnock, but would have axed the Fife expansion plans.

Managing Director David Gosnell released a statement saying: “We examined the alternative proposals thoroughly. They don’t deliver a business model that would be good for either Diageo or Scotland.

"We need a sustainable Scottish operation that supports our international spirits business and provides a future for the 4,000 people we would employ in Scotland after this restructuring is completed.  I appreciate their efforts but the Taskforce has no workable alternative to deliver what Diageo needs.”

Watch a full video interview with David Gosnell here>

The Scottish Government had offered the firm public subsidies to rethink its restructuring plans but Mr Gosnell rejected the idea, saying: “Diageo has never sought public funding for our proposals. We would prefer public money to be directed to the economies of Kilmarnock and Glasgow while we focus our own investment on sites critical to the future sustainability of our operations in Scotland."

Finance Secretary John Swinney has now spoken out against the "deeply disappointing" decision, saying: " I led a task force which worked effectively to put together the strongest arguments and substantive proposals to retain production and jobs at Port Dundas and Kilmarnock.

“I still do not believe that Diageo appreciate the social consequences of their financial decision in turning their backs on 200 years of history in Port Dundas and Kilmarnock.   

“We shall meet as a task force to consider our next steps. As a Government we will work unstintingly with our partners to mitigate the serious impacts and assist the people and communities affected by Diageo's decision-making."

Watch a full video interview with John Swinney here>

However, Diageo's decision to push ahead with closures in the West means Fife can expect to benefit from £86million investment.

Mid Scotland and Fife Conservative MSP Ted brocklebank wlcomed that development, saying: “Diageo’s rejection of the Scottish Government’s proposals now means that Fife will get the major jobs boost that was originally planned.

"Diageo are set to invest £86million in Fife to expand their Leven bottling plant and this will create 400 new jobs, which I welcome. These new jobs are much-needed and will provide a massive boost to an area which has been struggling in the midst of Gordon Brown’s recession.

“I am, of course, very disappointed that 900 jobs will be lost in Kilmarnock and Port Dundas as nobody wants to see jobs lost anywhere in Scotland during such difficult times."