Unite says parliament's damning indictment of Kraft must bring
Rosenfeld to Bournville, the birthplace of Cadbury
6th April 2010
Welcoming the damning indictment by the all-party business
select committee of the Kraft takeover of Cadbury, Unite deputy
general secretary, Jack Dromey today (Tuesday) repeated his call
for Irene Rosenfeld, Kraft's CEO, to meet Cadbury workers from
Britain and Ireland at the birthplace of the confectionery maker,
Bournville.
Jack Dromey also renewed his call for a ‘Cadbury law’ to prevent
further hostile takeovers of successful British companies by
overseas multinationals.
In a blistering attack on the conduct of Kraft as it swooped on
Cadbury, the Select Committee says: "Kraft acted both irresponsibly
and unwisely in making its original statement that it believed that
it could keep the Somerdale factory open. By doing so, Kraft has
left itself open to the charge that either it was incompetent in
its approach to the Somerdale factory or that it used a ‘cynical
ploy’ to improve its public image during its takeover of
Cadbury.
"Its actions have undoubtedly damaged its reputation in the
United Kingdom and has soured its relationship with Cadbury
employees. Kraft will now have to invest significant time and
effort into restoring its reputation and regaining the trust of the
public, its UK workforce and government and ourselves"
Applauding the committee for its report, Jack Dromey said "Kraft
should heed the voice of parliament to meet Cadbury workers
face-to-face. Irene Rosenfeld must now come to the birthplace of
Cadbury, Bournville in Birmingham."
The committee also said that Kraft gave undertakings in respect
of the future of Cadbury, which should now be monitored by
Department for Business for compliance.
Referring to the guarantee given by Kraft before the select
committee that - following the Somerdale fiasco - there will be no
further closures or compulsory redundancies for at least two years,
Jennie Formby, Unite’s national officer for the food and drink
sector, said: "Kraft has pledged before parliament and the people
of this country that there will be no cuts to plants or jobs for at
least two years. Cadbury is a world-class brand and one dear to the
heart of the British people. They will expect a long-term
commitment and serious investment so that Cadbury products, like
Dairy Milk, made in Britain stay in Britain.
"The select committee is right to support Unite’s demand for
stronger guarantees and for government to police the pledges from
Kraft. Cadbury workers deserve security for the future."
Unite will continue to push for protections for pensions, pay
and jobs for five years from the takeover of the chocolate maker
arguing that only longer-term pledges will allow Kraft to
demonstrate full commitment to the workforce across Britain and
Ireland.
"Never again," Jack Dromey concluded, "we need a new ‘Cadbury
Law’ banning hostile takeovers of successful British companies by
overseas multinationals. Never again should the short-term
interests of shareholders and the hedge-fund boys in red braces
making a quick buck come before the long-term interests of
household-name British companies and the thousands of jobs and
families these companies support."
So concerned was the business select committee by the hostile
bid for Cadbury, that earlier this year it held an emergency
inquiry into the takeover. Unite, which represents Cadbury
workers across Britain and Ireland, gave evidence to the
committee.
ENDS
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