Union: Kraft takeover is 'sad day for U.K. manufacturing'

The successful bid by U.S. foods giant Kraft for Cadbury marks a "very sad day for U.K. manufacturing", Unite the union said on January 20.

Kraft is thought to have persuaded large institutional shareholders that an increased bid for Cadbury is enough to swap a 200-year history of growth and independence for a place within the conglomerate's growing portfolio.

Unite says that the increased bid, an estimated GBP12 billion, and the continued exclusion of workers and key shareholders from the takeover consultation, means its concerns for Cadbury's future and the future of nearly 7,000 workers in the United Kingdom and Ireland very much remain.

Jennie Formby, Unite's national officer for food and drink, said: "This is a very sad day for U.K. manufacturing. A successful, iconic, independent U.K. brand will now be owned by a giant company with massive debt. We have very real fears about how Kraft will repay its debt, particularly as it has ratcheted it up still further in order to purchase Cadbury. Whatever good intentions Kraft may have towards Cadbury's workforce, the sad truth is there will be an irresistible imperative to pay down their debt, and this raises real fears for jobs and investment in this country.

"There are huge lessons to be learned from this takeover for UK business. Short-term City interests and institutional shareholders have dictated this process from the outset with little thought to the impact this sale will have on jobs, the supply chain or Cadbury's future. Unless our takeover regulations are changed, there is nothing the government or employees can do to prevent this happening again to another U.K. company. We will now be seeking urgent meetings with the senior management of both Kraft and Cadbury seeking guarantees over jobs and sites in the U.K. and Ireland to put our members' fears at rest."