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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
  Copyright (c) 2009 Dow Jones & Company, Inc.

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