Monday, November 30, 2009

Unite Job Fears At Cadbury

Unite has said they fear a take over of Birmingham-based chocolate firm Cadbury by US company Kraft will lead to "massive" job losses.

Unite spoke out after a recent meeting between the union and Kraft. A union spokesman said the firm did not give any guarantees over the workforce.

Cadbury has rejected Kraft's £9.8bn ($16.4bn) takeover offer but it will now go to shareholders.

Jennie Formby, the union's officer for the food sector, said nothing had been said by Kraft to allay concerns over jobs, particularly at the Somerdale plant in Keynsham.
'Lack information' She said Kraft had said it could not give guarantees as Cadbury had not provided enough information, given that it was a hostile takeover.

In her letter, Jennie Formby said: "Our major concern is to understand how you would achieve the quoted savings of $625m (which some analysts believe will need to rise to as much as £1.5bn) without significant restructuring involving the loss of jobs and sites."
Reports say US firm Hershey is also considering bidding for the firm.

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