UK union Unite has today (2 February) called on the Government to ensure that US food group Kraft Foods does not slash Cadbury’s UK workforce following its acquisition of the business.
Kraft’s GBP11.7bn (US$18.6bn) acquisition of the iconic UK chocolate maker is likely to be sealed this evening, with Cadbury investors poised to accept the company’s bid.
Kraft chairman and CEO Irene Rosenfeld is then believed to be scheduled to meet UK Business Secretary Peter Mandelson, as the Government seeks assurances over the security of UK jobs.
“We have some very grave concerns that Kraft will cut manufacturing in the UK as it looks to reduce costs in order to service its high levels of debt,” a spokesperson for Unite told just-food.
“Cadbury workers are calling on the Government to pin down some definite guarantees from Kraft over jobs,” the spokesperson said.
Jack Dromey, Unite’s deputy general secretary who will speak in Parliament, added that Kraft has done little to calm fears over UK jobs.
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By GlobalData“Our fear is that the Kraft takeover is not in the national interest, and in the months of this hostile takeover process we have heard nothing from Kraft to calm fears that it is in the interest of the Cadbury workforce either…Government must secure meaningful pledges from Kraft – and police them so that Kraft cannot again walk away from a UK workforce,” he said.