Union seeks assurances from Kraft on Cadbury takeover

Unions have written to Kraft demanding promises that the Cadbury plant in Keynsham will be reprieved following a takeover.

Kraft officially tabled a £9.8 billion takeover bid for the chocolate maker last week and has pledged to reverse a decision to close Somerdale in 2010 with the loss of 400 jobs.

Union Unite claims Kraft has refused offers to meet their members to discuss the takeover and secure commitments for members.

In the letter to Irene Rosenfeld, Unite presses for guarantees that jobs and terms will not be hit, including no site closures and no compulsory redundancies in UK and Ireland for five years.

It also asks there be no change to working terms and conditions for five years, no increase in pension contributions for five years and a commitment that the company will fund any pension deficit.

Jennie Formby, Unite national secretary for food and drink, said: "Since Kraft first made their intention clear to mount a hostile bid for Cadbury, there have been 'promises' made to employees in the UK, including a suggested reprieve for the Somerdale factory in Keynsham, which is scheduled to close next year, and to maintain the existing pension scheme.

"However, despite repeated approaches by Unite, Kraft has declined to be more specific about what is meant by those promises and how determined the company is to stand by them. This has left our members feeling very sceptical."

She added: "Commitments on employment will go some way towards assuring the workforce and Cadbury's customers that Kraft's bid will not compromise jobs and the products in any way."

A Kraft spokesman said they had received the letter and would reply.

Cadbury will open a plant in Poland next month to manufacture products made at Keynsham, including Curly Wurly, Crunchie and Mini Eggs. Kraft also has a Polish plant, which makes Terry's Chocolate Oranges.