'Sorry' Kraft promises two-year job cuts freeze

A Kraft executive apologised today for reneging on the company's promise to keep Cadbury's Somerdale factory open and pledged that there would be no more compulsory redundancies or factory closures in the UK for at least two years.

Marc Firestone, the executive vice-president of corporate and legal affairs of Kraft, told a hearing of MPs investigating the US food giant's controversial £10.5 billion takeover of Cadbury that, having listened to unions, MPs and the press, it was “clear that our reputation requires action more than words”.

He said: “First, I will say that we can commit that, for a period of at least two years, there will be no further closures of manufacturing facilities in the United Kingdom.

“I can also commit that, beyond any programmes that I mentioned that have already been negotiated and announced, there will be no further compulsory redundancies of manufacturing employees in the United Kingdom.

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“These are statements I believe are helpful in removing a cloud of uncertainty and creating an atmosphere where we truly do, as Kraft, want to regain the trust of our colleagues, of the Government, of the public.”

Mr Firestone also said Kraft was "terribly sorry" for going back on its promise to keep Somerdale open.

During the takeover battle, Kraft had pledged to keep the factory near Bristol open, despite Cadbury's plans to close it with the loss of 400 jobs. But once it completed the takeover it changed its mind.

Mr Firestone said it was only when the US company found out later that Cadbury had already spent tens of millions of pounds kitting out its factory in Poland, that Kraft decided that it had no choice but to renege on its commitment to Somerdale.

He said there was no way that Kraft could have known about Cadbury's investment in Poland, as the information was not in the public domain and the two companies were not talking with each other during the hostile bid.

He said that Kraft was "terribly disappointed" that it could not keep the plant open.

The MPs on the select committee said they found it difficult to accept that Kraft could not have known the full extent of Cadbury's investment in its new Polish factory.

Lembit Opik, Liberal Democrat, said he found it hard to believe that no one had been dismissed over the pledge.

business.timesonline.co.uk