Union warning of job threats

Jan 14 2010 by Iain Laing, The Journal

THOUSANDS of UK jobs could go abroad if chocolate maker Cadbury is bought by US giant Kraft, a union has warned.

Unite claims 7,000 jobs could go if control of the British firm moves to Illinois. Another 20,000 jobs in the supply chain could be at risk if the hostile bid goes is successful.

A Kraft spokesman said the claims were “utterly unfounded”. He said Kraft’s bid for Cadbury would be better for British jobs than other options.

In a briefing to Cadbury investors, the union warned the firm would be saddled with a “colossal” £22bn debt if the merger was passed.

Union spokeswoman Jennie Formby said: “If decisions about Cadbury’s future are transferred from Britain to Northfield, Illinois, it won’t be just workers who lose out.

“It will be Cadbury with its history of much-loved products and much-admired philanthropy, along with UK business, that suffer.”

And Kraft said the union’s comments were “utterly unfounded” and added: “We are confident our bid is going to be better for British manufacturing jobs than Cadbury remaining independent or being broken up by another company.”

Prospects of a bid battle for Cadbury were dampened yesterday after reports suggested Italian chocolate group Ferrero had abandoned plans to rival Kraft’s £10.5bn offer.

It is understood Ferrero - the privately-owned group behind Nutella and Ferrero Rocher chocolates - had dropped talks with mooted US bid partner Hershey and decided not to compete with Kraft.

Ferrero said in November it was considering its options over Cadbury and was thought to be planning to team up with Kisses firm Hershey for a joint approach.

Sources close to Ferrero have reported the group would not now be proceeding with a bid, with the head of the Ferrero family believed to be keen to keep the business independent.