"Massive" Job Losses Feared by Cadbury's Union Leader after Takeover
Union leaders of UK's giant confectioner Cadbury have shared concerns over "massive" job cuts that might come as a result of the firm's acquisition by US food giant Kraft. Revealing these fears after a meeting between the British firm's union and Kraft, the leaders said that Kraft had given no guarantees over keeping the workforce safe in anyway.
Kraft's most recent offer of ?9.8 Billion ($16.4 Billion) has been rejected by Cadbury, but it is now all set to go to shareholders, who might just be tempted by the big bid.
Kraft's Chief Executive Irene Rosenfeld has now been sent a letter in this regard by Jennie Formby, the union's officer for the food sector hinting that the union has a right to know about the arrangement. "Our major concern is to understand how you would achieve the quoted savings of $625 Million (which some analysts believe will need to rise to as much as ?1.5 Billion) without significant restructuring involving the loss of jobs and sites", Ms. Formby has written in her letter.
From Kraft's side, Richard Johnson, Director of the firm's Europe operations, said that the acquisition would be good from both manufacturing and British jobs, but no other assurances have been offered to the worried union.
As of now, in addition to Kraft, which has placed a hostile bid, US company Hershey is also in the run to takeover Cadbury, and the seller itself seems to prefer the latter.