WIREDGOV

More than one year on from Kraft's controversial takeover of Cadbury, the global's intentions towards thousands of workers remain shrouded in mystery - and we are still no closer to a Cadbury Law to defend UK-based companies against predatory purchases.

So says Unite, the union representing Kraft workers, voicing its fears on the day (Monday) that the influential select committee on business published its report into the conduct of Kraft since its 2010 swoop for Cadbury.

Unite welcomes the committee's scrutiny of Kraft, in particular the recommendation that the urgently needs a new takeover regime.

The committee also says a repeat of that Kraft's behaviour over Cadbury's Somerdale plant - which it promised to reprieve from closure then subsequently reneged on this once it had purchased the confectionary firm - must be guarded against by ensuring that promises made during bids are made binding.

So concerned has Unite been about Kraft's failure to disclose basic information since the takeover that it is now seeking to use international agreements to ensure the corporate informs the union about its plans.

Unite says Kraft must come clean on plans for the next five year period at least to reassure the workforce of its committment to the .

Jennie Formby, Unite's national officer for the food and drink sector, warns that the government must not sit on the sidelines: "One year on from Kraft's predatory purchase of Cadbury the workers are still none the wiser about the company's committments to its businesses.  In fact, we now have less information about the company's current state and future intentions than before the takeover.

"Workers look at Kraft's horrendous multi-billion debt, consider its record in other countries where jobs have gone, plants have shut and wages have been cut, and rightly worry about what the future holds for them.

"Only guarantees on jobs and investment will prove that Kraft is in the for the long haul.

"We are extremely thankful that the committee continues to scrutinise Kraft's conduct and to push for changes to the takeover regime. Takeover and corporate law in this country are too weak, offering workers no help and providing little or no protection for companies against predatory purchases. This must change.

"As global companies continue to see acquisition as a key plank of their growth plans, they will look at the and see how easy it is to swoop.  Countless other workers could find themselves in the same uncertain situation as Cadbury and Kraft workers unless the government acts.  
 

"Worryingly, however, it seems that the government has lost the appetite for the Cadbury Law promised by Vince Cable - but it must not shy away from giving our remaining industrial base desperately need protection."

The BIS select committee published their report on Monday on the Kraft inquiry - 'Is Kraft working for Cadbury'.

Kraft's colossal debt coupled with its secrecy gives rise to real fears for the future, warns Unite. Since the takeover, 6000 Cadbury workers based in the as well as thousands of Kraft workers now find themselves subject to corporate regulation under the aegis of the Securities and Exchange Commission. This means a lighter touch on business conduct and even poorer disclosure of business plans.

Unite supports the committee's recommendations on future takeovers including that statements on keeping factories for defined periods and these statements should be binding. It also says that Kraft must maintain employment levels and inform the committee of any change in their plans, again welcomed by Unite.

ENDS

For further information, please contact Pauline Doyle on 07976 832 861