Call Kraft and Cadbury to account, Unite urges Commons
14th February 2010
Unite the union has today (Sunday) welcomed the news that an
influential committee of MPs is to demand Kraft and Cadbury
executives come before them to explain their part in the most
unpopular corporate takeover in recent times, the sale of Cadbury
to Kraft.
Unite says it is a matter of national importance that both
companies are now held to account by the select committee on
Business and Industry when it calls them to give evidence in early
March.
Both Kraft and Cadbury evaded scrutiny of their plans during the
takeover process, hiding behind secretive UK takeover policy to do
so. This ensured that the workers were kept in the dark about
Kraft’s plans for them – and remain so to this day.
But with confirmation last week that 400 Cadbury workers at the
Somerdale plant are to lose their jobs, and further news that
Cadbury directors continue to make millions from the sale by
disposing of their shares, Unite says it is essential that those in
charge are now held to account. One, former CEO Todd Stitzer, made
£4.6 million in only a few seconds by exercising his share
options.
Jack Dromey, Unite deputy general secretary, said: “In the past
week Kraft has shocked Britain by blithely backtracking on promises
made on Cadbury jobs, and two more Cadbury directors cash in
handsomely on the sale, our lawmakers must hold those responsible
to account.
"The committee’s intervention must now bring us one step closer
to securing cast iron guarantees for the future and a ‘Cadbury Law’
because never again should one of this country’s manufacturing
jewels succumb to a hostile takeover.”
Jennie Formby, Unite national officer for food and drink, added:
“Both companies, but particularly Kraft, have many important
questions they must answer to the people of this country, not least
to 6,000 very anxious workers. They are reeling from Kraft’s
cynical misuse of the Somerdale workforce to deflect public
hostility to their bid and are now asking can this company be
trusted to honour redundancy pledges made too.
“For months Kraft has refused to come clean to either the
workers or our Ggovernment on its plans. The select committee must
make sure they cannot slip scrutiny any longer.”
The Business and Industry select committee has confirmed that it
will call Kraft executives before them to answer questions next
month. Unite says that Cadbury must be made to explain their
its role in allowing a successful business to pass into overseas
ownership, while Kraft must set out how they it will manage their
its growing debt burden so that UK jobs and investment are not
hit.
Unite is also increasingly concerned that Kraft could renege on
promises over pensions and redundancy made to the Somerdale
workforce who are to lose their jobs by the end of the year.
ENDS
