LONDON, Nov. 30 (UPI) -- Union leaders in Britain said a Kraft Foods takeover of Cadbury could result in "massive" layoffs, to make the acquisition cost effective.
Kraft is working on final details for a $16 billion bid for the British chocolate maker that it said it would submit by Friday, The Times of London Online reported Monday.
Kraft said it would keep a Cadbury plant in Somerdale, England, open, but union leaders said after a meeting with Kraft representatives that the company would offer no guarantees on the number of positions it may shed.
The union, Unite, said it was "growing increasingly concerned that U.S.-based transitional Kraft will pay for its bid for Cadbury with massive job losses in the U.K. and Ireland."
In a letter to Kraft Chief Executive Officer and Chairwoman Irene Rosenfeld, the union said the company only said it had an "intention" to keep the Somerdale plant running.
"While your representatives said they had a commitment to maintain manufacturing in the U.K., they were unable to give us any reassurance over Ireland -- or indeed for Kraft members in Europe," the letter said.
