Unions ask for guarantees as Kraft readies bid documents

City A.M. Reporter
A UNION representing workers at confectioner Cadbury yesterday asked hostile bidder Kraft for a promise on employment security, saying it was increasingly worried about &ldquo;massive job losses&rdquo;.<br /><br />Unite, Britain&rsquo;s biggest union, said it had written to Kraft chief executive Irene Rosenfeld about the &pound;10bn cash-and-shares bid and asked for commitments there would be no compulsory redundancies and protection for employment terms and pensions.<br /><br />&ldquo;Cadbury is a successful, profitable company that provides high quality jobs for over 6,000 employees in the UK and Ireland, and to date nothing has been said by Kraft to allay the concerns that we have about the potential threat to jobs and conditions should a takeover bid be successful,&rdquo; Unite quoted union official Jennie Formby as saying in the letter.<br /><br />Disquiet among Cadbury workers could add to pressure on Kraft, which already faces opposition from the firm&rsquo;s management and from sceptical investors hoping for a higher offer. Kraft is ready to post its document to shareholders by 7 December. Cadbury is trading significantly above Kraft&rsquo;s initial offer price which was worth about 717p per share.