UK Trade Union Remains Skeptical Of Kraft's Jobs Commitment
LONDON -(Dow Jones)- U.K. trade union Unite said Monday it remains very
skeptical about the commitment to U.K. jobs in Kraft Foods Inc.'s (KFT) latest
bid for Cadbury PLC (CBY).
Despite welcoming the comments on U.K. jobs contained in Kraft's offer
document Monday, Unite spokeswoman Jennie Formby said she remains "very
skeptical."
Kraft said Monday it will be able to continue operating Cadbury's Somerdale
factory in southwest England, "thereby preserving U.K. manufacturing jobs,"
should its GBP9.8 billion bid succeed. Cadbury is currently planning to close
the plant.
In addition, Kraft said "the existing contractual employment rights, including
pension rights, of all Cadbury Group employees will be fully safeguarded."
"We'll believe it when we see it," said Unite's Formby. "We'll be very careful
not to accept too quickly any assurances without seeing what lies behind it."
Formby said the union had repeatedly tried to engage with Kraft since it
originally proposed to buy Cadbury in early September.
"So far they've been more than happy to make comments in the press but they
won't talk to us," she said.
Formby pointed out that Unite represents Cadbury employees in Ireland as well
as the U.K., and Kraft has made no commitment to jobs outside the U.K.
She added that Kraft's own employees in Europe were also "very concerned"
about their jobs.
-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; michael.carolan@
dowjones.com
(END) Dow Jones Newswires
11-09-091027ET
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