Kraft move to shut Cadbury plant attracts criticism

Kraft Foods' move to shut down a Cadbury plant in Britain has come in for severe criticism, with the labour union Unite saying the US firm cares little for its workers as the move will result in hundreds of job losses.

However, the American company on Tuesday reiterated its decision to go ahead with the closure of Cadbury's facility at Somerdale by 2011.

"It is with great anger that we heard the announcement by Kraft that the closure of the Somerdale plant will go ahead as planned," Unite national officer for the food and drinks sector Jennie Formby said in a statement yesterday.

Ending months of bitter wrangling, British chocolate maker Cadbury in January agreed to Kraft's takeover offer worth 11.9 billion pounds.

According to Kraft, the talks with senior Cadbury management are "so far advanced that it is unrealistic to reverse them".

Going by reports, the plant shut down by 2011, is expected to result in nearly 400 job losses.

"This sends the worst possible message to the 6,000 other Cadbury workers in Britain and Ireland. It tells them that Kraft cares little for its workers," Formby said.

Meanwhile, British business secretary Lord Mandelson, who met Kraft chief executive Irene Rosenfeld last week, said the company's move has created fear and anxiety among Cadbury workers.

Speaking to British channel SkyNews, he pointed out that Kraft's U-turn has created "fear and anxiety" among workers.

Announcing the decision to down shutters on the Somerdale plant, Kraft chief executive Rosenfeld said it is "unrealistic to reverse the closure programme, despite our original intent not to do so.

"While this is a difficult decision, we have moved quickly to end any further uncertainty."

Kraft has stressed that it would honour Cadbury's previous undertakings to Somerdale employees concerning the terms and conditions of the closure.

On the other hand, Unite said Kraft deliberately misled people by saying they would keep the Somerdale plant open.

"Kraft's thirst for public approval during the most unpopular takeover in recent times drove the company to ignore those warnings and instead choose to state repeatedly that the site would not close," Formby added.