Kraft executives to be called to account by MPs

15 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's.

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.

'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.'

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