Loss of Cadbury's independence 'very sad' day for UK manufacturing,
says Unite
19th January 2010
The successful bid by US giant Kraft for Cadbury marks a "very
sad day for UK manufacturing," Unite the union said today.
Kraft is thought to have persuaded large institutional
shareholders that an increased bid for Cadbury is enough to swap a
200-year history of growth and independence for a place within the
conglomerate's growing portfolio.
Unite says that the increased bid, an estimated £12 billion, and
the continued exclusion of workers and key shareholders from the
takeover consultation, means its concerns for Cadbury's future and
the future of nearly 7,000 workers in the UK and Ireland very much
remain.
Jennie Formby, Unite's national officer for food and drink,
said: "This is a very sad day for UK manufacturing. A successful,
iconic, independent UK brand will now be owned by a giant company
with massive debt.
"We have very real fears about how Kraft will repay its debt,
particularly as it has ratcheted it up still further in order to
purchase Cadbury. Whatever good intentions Kraft may have towards
Cadbury's workforce, the sad truth is there will be an irresistible
imperative to pay down their debt, and this raises real fears for
jobs and investment in this country.
"There are huge lessons to be learned from this takeover for UK
business. Short-term City interests and institutional
shareholders have dictated this process from the outset with little
thought to the impact this sale will have on jobs, the supply chain
or Cadbury's future. Unless our takeover regulations are
changed, there is nothing the government or employees can do to
prevent this happening again to another UK company.
"We will now be seeking urgent meetings with the senior
management of both Kraft and Cadbury looking for guarantees
over jobs and sites in the UK and Ireland to put our members’ fears
at rest.”
ENDS
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