Coalition ‘dragging its feet’ over Cadbury Law, says Unite
14 March 2011
Ministers are ‘dragging their feet’ on a ‘Cadbury Law’ to
protect British firms from predatory takeovers, Unite, the largest
union in the country, said today (Monday 14 March).
Unite was commenting as the Business, Innovation and Skills
(BIS) select committee was due to grill top Kraft executives
tomorrow (Tuesday, 15 March) – a year on from Kraft’s controversial
takeover of the profitable chocolate company, Cadbury.
The furore caused by the takeover tactics, which Unite said put
short-term profits for financial institutions ahead of the long
term interests of the company, its products and its workforce,
prompted calls for a ‘Cadbury Law’.
Such legislation would protect viable British concerns from
being at the mercy of predatory tactics by investors only
interested in quick financial returns.
But Unite’s national officer for food and drink, Jennie Formby,
said: ”Since last year’s takeover, the government has been very
silent on the need for a Cadbury Law which would protect viable
British companies from predatory takeovers from financial
institutions which have no real interest in the long-term welfare
of the company, its employees and product development.
”If the government is really serious about having a vibrant
manufacturing policy to help us out of the economic mire, a Cadbury
Law should be an integral part of such a strategy – but ministers
appear to be dragging their feet.
”Business secretary Vince Cable – having had his teeth drawn
over the BSkyB fiasco – now needs to prove he has a political
future and enact a Cadbury Law very quickly.
”The fact that Kraft’s chief executive Irene Rosenfeld has
refused to appear before the BIS select committee shows the
arrogance of international capitalism and does not bode well for
British companies fighting off greedy and speculative bids in
future.
”Kraft’s refusal to give any more than a two-year guarantee over
no compulsory redundancies or site closures is another area of
serious concern.
”We hope the BIS select committee will use the opportunity they
have tomorrow (Tuesday) to quiz Kraft’s senior executives on their
longer-term plans for the manufacturing sites in the UK and Ireland
– and the many thousands of workers whose jobs depend on them.
”The need for a Cadbury Law is overwhelming, imperative and
urgent.”
ENDS
Notes to news editors:
For further information, please contact Jennie Formby on 07702
206 436 and/or Unite communications officer, Shaun Noble on 07768
693940
