Are the unions behind the proposed Cadbury law?
As we await official confirmation in the Labour manifesto regarding a proposed Cadbury law to protect UK companies there is speculation that the union paymasters of the Labour Party could be behind this move. Those who followed the Cadbury takeover by Kraft Foods will be well away of union anger prior to and after the deal was concluded with particular concerns regarding job protection in the UK.
The situation is also clouded somewhat by an announcement from Lord Mandelson earlier this year in which he seemed to dismiss calls for further protection of UK companies. This one issue alone, i.e. the changing of Lord Mandelson's mind, has set the alarm bells ringing across the UK and added fuel to the fire of concerns about increasing union influence within the corridors of power in the UK. There are also other issues to consider with potential tit-for-tat moves from overseas governments if the UK authorities push through with this latest threat.
Many overseas companies have been attracted to the UK investment markets due to their free-market nature and the lack of regulations compared to other leading investment centres. If the UK investment markets are strangled by increasing regulation and the freedom of investors and investment companies is reduced then we could see other investment markets around the world benefit.
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