Kraft avoids pledge to Cadbury workers

Wednesday 3rd February 2010, 11:30AM GMT.

Kraft avoids pledge to Cadbury workers

Lord Mandelson today said he was “disappointed” that Cadbury’s new American owners, Kraft, had refused to confirm that the historic chocolate maker would still be run from the UK.

The Bournville-based confectioner was today beginning life under foreign ownership, after the US food giant successfully took over 72 per cent of the shares.

The company will be taken off the stock market when it passes the 75 per cent threshold, with an automatic buy-out of remaining shares kicking in when it reaches 90 per cent.

Business Secretary Lord Mandelson expressed his disappointment after he failed to win assurances about the future running of the firm following talks with Kraft chairman Irene Rosenfeld last night.

Lord Mandelson said she had been unable to confirm that Cadbury’s confectionery brands will continue to be managed and operated globally out of the UK.

“On the other hand, she said that she expects Britain to be a net gainer in manufacturing output and employment, so that was encouraging.

“I’m glad now to be in personal touch but what I will be looking for are much harder, more specific commitments in the next three to six months.”

Ms Rosenfeld insisted the deal would be good for British manufacturing jobs but would not give any cast-iron guarantees on staffing.

“As we have said from the outset, our interest is in growing Cadbury and investing in its great brands and people,” she said.

“That will be good for the company, good for the UK and good for British manufacturing jobs.”

Kraft’s successful battle for Cadbury shareholder approval heralds the end of the iconic British firm’s 186-year history as an independent company.

Earlier, hundreds of Cadbury workers staged a noisy protest in Westminster to call for guarantees over their jobs and conditions.


  1. 1
    Bren

    Once again, vultures scour the landscape. I can think of several foreign (global) ownerships that have had a negative impact on British workers in the past..wages, working conditions, hours as well as staff incentives are affected as a result. Don’t tell me this couldn’t have been avoided..and try doing this to say, the French. These ‘America’ owners..more like global banding systems; American’s don’t call the shots anymore.

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  2. 2
    moikel

    if it wasn`t for the hundreds who would lose their jobs, we ought to boycott cadburys. it seems like typical american philosophy to me…HEAD EM UP, AND MOVE EM OUT.

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  3. 3
    Dave

    I am afraid cadburys are finished remember Terrys out on there ears and all production to Poland. I am a born and bread brummie and love cadburys chocolate but it will be like all our once great brands given to east europe and slave labour wages and as usual the great british public are shafted.

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