Cadbury's chances of staying independent from Kraft are set to receive a boost as Unite, the union representing most Cadbury workers, gears up for a campaign to support the confectioner.
This week the union publicly stated its concerns over Kraft's bid, but it has now told The Grocer it would also oppose a rival bid from Hershey.
Last Monday the union's national food and drink officer Jennie Formby sent Kraft CEO Irene Rosenfeld a public letter expressing the union's "growing concerns" over the company's refusal to give guarantees on jobs and conditions.
"Kraft representatives stated that they were unable to give any guarantees either about jobs or conditions, or about the future of [the] Somerdale [site], as Kraft is unable to get sufficient information from Cadbury as a result of the status of the bid as hostile," she wrote. "I cannot accept this; you clearly have enough information to persuade you to make a bid worth £10bn and, as we pointed out in the meeting, in the context of the overall bid the assurances we seek are not a major commitment on the part of Kraft."
But in an interview with The Grocer this week, Formby revealed the union would not support any of the potential rival bids for the confectioner either, despite hints from Cadbury CEO Todd Stitzer in the national media that he would find a Hershey bid preferable to one from Kraft.
"Hershey might look better next to Kraft, and may be a better bet for workers, but this company's 'ethics' didn't prevent it outsourcing US jobs to Mexico," she said. "Analysts think any buyer may have to find $1.5bn of cost savings, and it's hard to see where that could come from, other than pay and conditions.
"Despite disputes over the Somerdale site, we have a good relationship with Cadbury management. It's a good, successful and profitable company and we believe it is best for workers in both the UK and Ireland if Cadbury remains independent."
The union said it had already signed up high-profile support for its formal campaign, which will belaunched next week.
This week the union publicly stated its concerns over Kraft's bid, but it has now told The Grocer it would also oppose a rival bid from Hershey.
Last Monday the union's national food and drink officer Jennie Formby sent Kraft CEO Irene Rosenfeld a public letter expressing the union's "growing concerns" over the company's refusal to give guarantees on jobs and conditions.
"Kraft representatives stated that they were unable to give any guarantees either about jobs or conditions, or about the future of [the] Somerdale [site], as Kraft is unable to get sufficient information from Cadbury as a result of the status of the bid as hostile," she wrote. "I cannot accept this; you clearly have enough information to persuade you to make a bid worth £10bn and, as we pointed out in the meeting, in the context of the overall bid the assurances we seek are not a major commitment on the part of Kraft."
But in an interview with The Grocer this week, Formby revealed the union would not support any of the potential rival bids for the confectioner either, despite hints from Cadbury CEO Todd Stitzer in the national media that he would find a Hershey bid preferable to one from Kraft.
"Hershey might look better next to Kraft, and may be a better bet for workers, but this company's 'ethics' didn't prevent it outsourcing US jobs to Mexico," she said. "Analysts think any buyer may have to find $1.5bn of cost savings, and it's hard to see where that could come from, other than pay and conditions.
"Despite disputes over the Somerdale site, we have a good relationship with Cadbury management. It's a good, successful and profitable company and we believe it is best for workers in both the UK and Ireland if Cadbury remains independent."
The union said it had already signed up high-profile support for its formal campaign, which will belaunched next week.
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