Unite pushes Kraft to come clean on guarantees for Cadbury workers

16 November 2009

Unite the union has today (Monday) written to the Chief Executive of Kraft, Irene Rosenfeld, to urge the US food giant to come clean on its plans for Cadbury and its UK workforce.

The union says that Kraft's refusal to engage in dialogue on the employment consequences of its takeover bid is causing increasing anxiety among the Cadbury workforce and raising doubts about the future of the iconic chocolate brand.

In the letter to Irene Rosenfeld, Unite presses for guarantees that jobs and terms will not be hit, including no site closures and no compulsory redundancies in UK and Ireland for five years, no erosion of terms and conditions for five years, no increase in pension contributions for five years and a commitment that the company will fund any pension deficit. Such guarantees will provide assurance that Kraft's intentions towards Cadbury and its workforce are honourable.

Jennie Formby, Unite national secretary for food and drink, says it is now time for Kraft to come clean: "Since Kraft first made their intention clear to mount a hostile bid for Cadbury, there have been ‘promises’ made to the employees in the UK, including a suggested reprieve for the Somerdale factory in Keynsham, which is scheduled to close next year, and to maintain the existing pension scheme.

"However, despite repeated approaches by Unite, Kraft has declined to be more specific about what is meant by those promises and how determined the company is to stand by them. This has left our members feeling very sceptical about how genuine those commitments may be.

"There are many people in the UK, and in particular among Unite members in Cadbury, who are extremely concerned about the takeover of what is clearly an iconic British company producing some of this country's best loved products. We need Kraft to do much more to inspire confidence that has made Cadbury loved nationally, and that includes its dedicated workforce, will not suffer in this takeover. But Kraft's repeated refusal to speak to us meaningfully about the issues that are most important to our members and the British public lead us to grow increasingly anxious about the company's intentions.

"Commitments on employment will go some way towards assuring the workforce and Cadbury's customers that Kraft's bid will not compromise jobs and the products in any way. Conversely, without such guarantees, Unite will be forced to conclude that this is indeed a hostile takeover."

Unite has asked the company to meet with it as soon as possible to discuss the employment guarantees it is seeking in the immediate term.

ENDS

For further information, please contact Pauline Doyle on 07976 832 861.

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