Cadbury Jobs Safe in Kraft Takeover
The workers at Cadbury have been reassured that their jobs are safe by Prime Minister Gordon Brown, after the candy maker agreed to consider an £11.9 billion (€13.1 billion or $19.4 billion) takeover bid by US macaroni maker Kraft Foods. Brown says that the Government is determining jobs in the candy company to be secure. They are finding that the levels of investment that take place at Cadbury in the UK are maintained and jobs can be saved, he said.
Cadbury Chairman Roger Carr says that the deal represents good value for their shareholders. Kraft Foods Chairman and CEO Irene Rosenfeld says that they greatly respect Cadbury’s heritage, brands, and people and believe they will thrive as one.
However, Unite, the workers’ union, is calling for an emergency meeting. The union’s Jennie Formby says that their first concern is for job losses and the closing of factories in Ireland and the UK. There are about 45,000 people working for Cadbury across 60 countries - 5,600 workers across 8 manufacturing sites are located in the UK and Ireland.
The fear of job losses and factory closings comes as Kraft’s debt means they will have to strip assets in order to afford the deal, according to Felicity Loudon, the great granddaughter of Cadbury founder John Cadbury. She’s angry about the deal, because she doesn’t think anyone is thinking about the peoples’ jobs.
However, there is still time for US rival Hershey to make a counter bid. The milk chocolate candy maker has until Saturday to submit a proposal, which would work to both Cadbury’s and Hershey’s advantage in the candy market, as well as better secure jobs.
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