Is Kraft Working for Cadbury?
HC 871, Sixth Report of Session 2010-12 - Report, Together with Formal Minutes, Oral and Written Evidence
- House of Commons - Business, Innovation and Skills Committee
- TSO (The Stationery Office)
'Is Kraft working for Cadbury? (HC 871)' reports on the Business, Innovation and Skills Committee's considerations of the undertakings agreed upon by Kraft with the Committee in the previous parliament on manufacturing and job retention.
The Committee is particularly concerned about a number of regrettable job losses at Cadbury headquarters in the months following the acquisition, and about transfer of management functions away from the UK.
After evidence from Kraft, the Committee was encouraged to hear of Kraft's recent recruitment into research at Cadbury and its investment in Cadbury manufacturing in this country. Particularly welcome were the commitment to extending Kraft's international research activities at Bournville and the confirmation on the future of the Reading Research and Development (R&D) facility.
Some concerns remain, notably around pay harmonisation and transfer of strategic brand management to Zurich. The Committee trusts that Kraft will now signal an extension of its commitment to Cadbury UK into the medium term through further sustained investment, and that that the synergy savings to be made from the takeover will be invested back for growth at Cadbury UK.
In May 2010 the Takeover Panel criticised Kraft for its handling of the Somerdale factory closure announcement. That decision was a serious matter and the Committee hopes that Kraft will fully accept the Takeover Panel criticism and the particular responsibility that it brings to value the efforts of the Cadbury workforce. Kraft must abide by its undertaking that the harmonisation of pay and conditions will not be about cost cutting.
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