Sorry Kraft promises two-year freeze on pursuit cuts

Robert Lindsay and Catherine Boyle & , : {}

A Kraft senior manager apologised currently for reneging on the company"s guarantee to keep Cadbury"s Somerdale bureau open and affianced that there would be no some-more mandatory redundancies or bureau closures in the UK for at slightest dual years.

Marc Firestone, the senior manager vice-president of corporate and authorised affairs, told the Business, Innovation and Skills Select Committee review in to the American food group"s 10.5 billion takeover of Cadbury that, carrying listened to unions, MPs and the press, it was transparent that the repute requires movement some-more than words.

Mr Firestone said: First, I will contend that we can dedicate that, for a duration of at slightest dual years, there will be no serve closures of production comforts in the United Kingdom.

Adding that there would be no serve mandatory redundancies of production employees in the United Kingdom", he said: These are statements I hold are beneficial in stealing a clouded cover of doubt and formulating an ambience where we indeed do, as Kraft, wish to recover the certitude of the colleagues, of the Government, of the public.

Related LinksKraft on the rack over jobsKraft exploration hits Takeover Panel period Playing to the assembly dissapoint the critics

Mr Firestone pronounced that Kraft was "terribly sorry" for going behind on the guarantee to keep Somerdale open. During the takeover battle, Kraft had affianced to keep the bureau nearby Bristol open, notwithstanding Cadbury"s plans to close it with the loss of 400 jobs. But once it finished the takeover, it altered the mind.

He confirmed that it was usually when Kraft found out after that Cadbury had already outlayed tens of millions of pounds kitting out the bureau in Poland that it motionless that it had no preference but to renege on the joining to Somerdale. He pronounced there was no approach that Kraft could have well known about Cadbury"s investment in Poland, as the report was not in the open domain and the dual companies were not articulate to each alternative during the antagonistic bid.

However, members of the cabinet were distrustful of the claims done my Mr Firestone. They additionally dull on the preference by Irene Rosenfeld, Kraft"s boss, not to attend the name cabinet meeting. Brian Binley, a Labour member, called her deficiency a "sizeable discourtesy".

Peter Luff, the committee"s chairman, discharged Mr Firestone"s counterclaim that Ms Rosenfeld was in attendance a house of directors" assembly today, saying: "We organized this event around your convenience, not ours."

Asked for specific guarantees over the destiny of Bournville, Cadbury"s flagship bureau nearby Birmingham, Mr Firestone said: "Bournville stays at the heart of the Cadbury business. We intend to say it. We intend to deposit in it. We intend to keep it competitive."

Mr Firestone additionally pronounced that he would keep Cadbury"s selling and sales operations in the UK since "they assimilate the British market".

The comments unsuccessful to damp most members of the committee. Lindsey Hoyle, a Labour MP, pulled out a Terry"s Chocolate Orange to have the point that Kraft sealed the Terry"s bureau in York after it paid for the association in 1993, notwithstanding earnest to keep it open. He said: "The Vikings came to York to pillage. Kraft went to York and did just the same thing. You pillaged and asset-stripped the company."

The Unite kinship had warned that the multibillion-pound takeover had left a subject symbol over the destiny of thousands of Cadbury workers.

hair wig