The Unite union yesterday angrily condemned plans by Cadbury’s new owner, US giant Kraft Foods, to move jobs out of the UK to Switzerland.
Kraft expects to pay less UK corporation tax by moving ‘certain roles’ to Zurich.
UK corporation tax is levied at 28 per cent, while rates at Kraft’s European headquarters in Zurich begin at 15 per cent.
Unite said legislation should be changed to prevent Kraft from making such a move.
Former Business Secretary Lord Mandelson however warned: ‘Whatever assurances Kraft gives about Cadbury’s future in the UK, this move is the beginning of a slippery slope.’
Deputy Speaker Lindsay Hoyle, who was a member of the House of Commons committee that scrutinised the takeover last year, said: ‘We were very worried about Kraft’s commitment to the UK then and we have been proved right.’
Jennie Formby, Unite national officer for the food and drink sector, said: ‘It’s an absolute disgrace that companies which make billions of pounds of profit from sales in the UK are able to avoid paying corporation tax in this way.
‘Kraft claims this will not impact their workforce but that simply isn’t true.
‘These tremendously wealthy multinationals like Kraft are behaving like rogues.’
Kraft has already closed one UK plant.
In May, Unite welcomed ‘the stinging criticism of Kraft in the report of the Takeover Panel, that Kraft should not have promised to keep open the Cadbury Somerdale plant in Keynsham’.
Formby said: ‘While nothing can compensate our members at Somerdale, what’s needed now is legislation to ensure that this can never happen again.’
In January this year, Unite warned: ‘A colossal £22bn worth of debt will swamp Cadbury and could put at risk some 30,000 jobs, including around 7,000 jobs at Cadbury itself, if Kraft’s bid for the confectionery company wins through.
‘Unite is seriously concerned that the interests of the company, its workforce and its extensive supply chain will be placed at risk if Kraft is able to push through its hostile bid.’
The union distributed a briefing to all Cadbury investors asking them ‘to put the wider public interest implications of losing Cadbury’s independence before the narrow issue of share price’.
Formby said then: ‘Cadbury has clearly demonstrated its strength as a standalone company.
‘Contrast that with Kraft’s excessive debt, under-performance and the unacceptable risks this brings for Cadbury and it is hard to see any wisdom in this bid whatsoever.
‘We have given Kraft repeated opportunities to provide assurances on jobs and investment but on every occasion the company has declined to do so, adding to concerns that Cadbury workers and their communities are not a priority.’
