Kraft boss says job cut fears overstated
The chief executive of Kraft says fears of job cuts at Cadbury's UK sites are "greatly overstated" – and that the Dairy Milk-maker had a "positive future" under US food giant's ownership.
The chief executive of Kraft says fears of job cuts at Cadbury's UK sites are "greatly overstated" – and that the Dairy Milk-maker had a "positive future" under US food giant's ownership.
Irene Rosenfeld, in her first interview since the £11.7 billion takeover was agreed by the Cadbury board last month, said Kraft would not be looking at any deals in the near future following the acquisition of the UK business and the sale of its own pizza business in the US.
"We acquired Cadbury because we believe it is a fabulous business and it is our intention to protect those assets," she said.
Her comments at the weekend came as Cadbury shareholders prepared to vote tomorrow on the revised offer from Kraft, which upped its original bid to seal the deal. "It is our intention to invest in the business. In fact, if anything, the opportunities for the business will be greater as a result of the combination than perhaps they might have been on a standalone basis.
"We have made a commitment that we believe will be a net positive for manufacturing jobs for Cadbury, and I am still hopeful that we will be able to accomplish that. I think the next weeks and months will be very important for us working collectively to figure out what is the best way forward to grow this business," she said.
"We are committed to growing it. The concerns about jobs and job losses, particularly in the manufacturing community, are greatly overstated," she added.
But unions representing thousands of workers at Cadbury – 2,500 of them in the West Midlands, where the chocolate maker has its historic home at Bournville in Birmingham – today voiced fresh fears for jobs.
Unite said there was still no information available on the consequences of the takeover for the workforces of both Cadbury and Kraft.
The union urged Kraft to make its intentions clear, warning that workers were "extremely worried" for their future.
Unite, and the unions representing Kraft workers in the US and Europe, claimed the conglomerate's silence on its plans was "spreading insecurity" among workers. Jennie Formby, national officer of Unite, said: "Our workers at Cadbury are extremely worried that what was a bright future for them will be dimmer under Kraft, and our UK Kraft members are also anxious to learn what their future holds.
"With the purchase of Cadbury sure to be completed in the next 24 hours Kraft can no longer hide behind the secrecy of UK takeover rules. They must come clean on their plans because workers are being left to dread the worst," he added.
Cadbury workers are to lobby the Government tomorrow for support to win job and investment guarantees from their new US employer. Comments made by Tory MP Bill Wiggin who told Cadbury workers to stop whinging have been branded "shocking" by Telford Labour MP David Wright.
