Tuesday, February 02, 2010

The Kraft of Cadbury 2

Like so much we don't notice what's going on around us until it bites us in the arse. The latest release hot off the Press Association details what Cadbury workers think about the probably taken over Cadbury.

a law should now be introduced to prevent any more British "icons" being bought by a foreign firm

"We now want cast iron guarantees from Kraft about the future for workers, and we want the Government to act as guarantor..."

Um how?

In the first instance we're signed up to the WTO which is all about free trade between members the big statement for that is non-discrimination, we have to treat all WTO members equally and that means we can't turn around and tell one WTO member (America) they can't buy a company when another WTO member (UK) can.


Only think this applies to country tiffs try this America tried to stop foreign online gambling sites, Antigua complained to the WTO, they agreed. So nope no new laws to stop foreign firms buying 'our' companies that's a trade restriction.

In theory the only thing the government could do is nationalise the company and even that could be legally dodgy if it can be shown only to be done to prevent foreign ownership, chocolate manufacture ain't exactly national defence.

Next up is the 'cast-iron' guarantees the workers want from Kraft. Unless the UK gets a contract or publicised verbal agreement made to them from Kraft stating they won't fire workers or what have you any 'agreement' made is worthless. If they do make such an agreement the one thing you can guarantee is that Kraft will be getting more out of it in tax breaks or some such.

So to recap legally the government can't do anything and Kraft aren't going to be tied down to agreements unless they get a lot more in return which will just shift the burden onto everyone's shoulders.

I just wish these quasi-BNP rallyists would do some research before they opened their mouths.

2 comments:

Orphi said...

People lose their jobs all the time, takeover or not.

Last time I checked, the government can't actually stop companies from failing. (Exhibit A: Jaguar.)

Orphi said...

I realise it's pointless and only vaguely related, but it gave me such a giggle the first time: The Daily Mash