Unite comment on Cadbury cost savings
6 August 2010
After announcing its results last night Kraft said that it
expects to get even more cost savings out of Cadbury than
previously planned. At the time of the acquisition the firm said it
would make annual savings of $675 million, but it now estimates
this will be $750 million.
In response, Jennie Formby, Unite's national officer for the
food and drink sector, said: "Unite members at Cadbury will be
extremely concerned to hear Kraft’s statement that it expects to
get even more savings out of Cadbury than originally
envisaged. There have already been significant job losses
among management and staff grades following the takeover, and this
statement implies there could be more to follow.
"Unite vigorously opposed the takeover because we knew that with
such high leverage, the temptation to use job losses to pay down
debt would be too strong for Kraft to resist and we will be asking
the company to give us immediate assurances that no more of
Cadbury’s long-serving and loyal workforce will be forced to pay
the price of the takeover with their jobs."
ENDS
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