MPs to quiz Kraft executives on Cadbury takeover conduct
15th March 2010
Unite calls for ‘takeover’ law to be
strengthened to protect British companies
MPs will have their first opportunity tomorrow (Tuesday, 16
March) to call the top management of Kraft to account for its
controversial takeover of Cadbury.
The all-party business select committee will cross-examine Kraft
executives on their conduct during the £12 billion takeover which
has left a question mark over the future of the 6,000-strong UK
workforce.
Jack Dromey, Unite’s deputy general secretary, who will also
give evidence to the committee, will call for the introduction of a
‘Cadbury's Law’ aimed at preventing hostile takeovers of British
companies which are not in the public interest.
Said Jack Dromey: “This is the first time that Kraft - a
debt-laden American multi-national - has been called to account
over its actions which saw the company mislead Cadbury workers and
the public, and break its promises over closing plants within seven
days.
”Kraft must now give cast-iron guarantees that it will guarantee
the jobs, the prosperity and economic future of this world-class
British company which has been a role model in promoting the
welfare of its employees over the decades.”
Jennie Formby, Unite national secretary for the food sector
said: ”There is great deal of uncertainty amongst the 6,000-strong
workforce and Kraft need to reassure them as to their future
employment.
”Already Kraft is pressing ahead with plans to shut the
Somerdale plant with the loss of 400 jobs and it also announced
plans to cut 150 administration jobs. This is a disgraceful
betrayal.
”Kraft has also given notice that it intends to slash the terms
and conditions for new staff at its Banbury plant.“
ENDS
NOTE TO NEWS EDITORS:
- The Select Committee hearing will be held at 10.30am, Tuesday
16 March in Committee Room 16.
- A group of stewards from Cadbury and Kraft will be attending
the hearing.
For further information, please ring Jack Dromey 07976 833 362,
Jennie Formby07702 206436, Shaun Noble, communications officer 020
7420 8951
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