KRAFT senior executives face a grilling from MPs today over the company’s plans for the future of Cadbury one year after it completed its hostile takeover of the Bournville group in a £11.5bn deal.
Chief executive Irene Rosenfeld has once again refused to appear before the Business Select Committee – much to the disgust of MPs sitting on the body – and has instead sent senior managers in her place.
The US food giant has mounted a running battle with MPs since its takeover, repeatedly questioning their right to challenge a business decision.
MPs for their part have criticised Kraft firstly for its U-turn over the closure of the Somerdale plant, near Bristol and secondly for the decision to move Cadbury’s UK head office to Switzerland, thereby depriving the Treasury of millions of pounds in tax.
The committee now wants assurances from Kraft over the future of its UK operations, in particular the thousands of manufacturing jobs in Birmingham.
Kraft last year has placed a two-year moratorium on jobs at Bournville and said the plant would become the company’s global centre of excellence for chocolate development.
However, what the future holds for workers beyond next March is still uncertain and fears remain the group could look to keep costs down by switching part or all production aboard – 400 jobs went to Poland with the closure earlier this year of the Somerdale operation.
Trade union Unite, which represents many of the workers at Bournville has already warned that the honeymoon may be over for Kraft and unless it can provide cast-iron assurances over the future of UK jobs, it risks antagonising not just the legislature but the general public as well.
Criticisms of Kraft have been rife since the takeover, many claiming the company just wanted to get its hands on the brand to secure access to emerging markets, while others said the Cadbury chewing gum operation was the real prize so far as the US firm was concerned.
