Kraft's Cadbury factory jobs pledge 'irresponsible'

A committee of MPs said Kraft was "unwise" to promise to save the Somerdale factory near Bristol, only to announce later that it would close after all, with the loss of 400 jobs.

In a critical report, the Business Select Committee urged the Government to monitor a number of undertakings given by the company, including pledges of no compulsory redundancies for two years, funding arrangements for the Cadbury Foundation and future pension arrangements.

The cross-party committee, which took evidence from the company and union leaders last month, also called for Kraft to clarify its intentions over the "lack" of specific guarantees on the future of Cadbury factories near Wrexham in North Wales, and in Herefordshire as well as future levels of employment at research centres in Reading, Berkshire, and Bournville in Birmingham.

Committee chairman Peter Luff, the Conservative MP for Mid-Worcestershire, said: "The controversy surrounding the Kraft takeover of Cadbury has rightly opened a debate on how takeovers in the UK are conducted.

"That debate must continue, as a matter of urgency, in the next Parliament and I fully expect the next Business, Innovation and Skills Committee to play a key role in any future reform.

"Kraft gave us a number of undertakings on the future of Cadbury, which we have put in the public domain. Kraft will have to deliver, in full, on these undertakings if it is to repair the damage caused to its reputation by the woeful handling of the closure of the Somerdale factory.

"Given the lack of trust in Kraft at the moment, it is vital that the Department for Business, Innovation and Skills keeps a very close eye on Kraft's compliance with its undertakings.

"The future of Cadbury's R&D centres of excellence at Reading and Bournville are central to those undertakings.

"Any stripping out of the highly skilled workforce at those centres would represent a serious breach of trust, and one that would require a robust response from both Government and Parliament, " the MP said.