Qualified advisers answering your
Financial Questions
call 0800 092 1245

Kraft Foods looks to reorganise Cadbury pension scheme

Despite the fact that Kraft Foods made various promises during the takeover of UK icon Cadbury it appears as though there will be significant changes in the short-term. The company has come under fire for giving Cadbury workers a stark ultimatum of accepting a three-year pay freeze or leaving the company's final salary pension scheme. This is just the latest in a line of controversial decisions by the American giant which has already backtracked on a promise not to close the Cadbury factory near Bristol with the loss of 400 jobs.

The Cadbury pension scheme is rumoured to have a deficit in the region of £258 million although some age-old clauses within the scheme itself are said to make it near impossible to actually close the scheme. This latest move by Kraft Foods is certain to grab the attention of the UK government which has made a number of stinging and controversial comments regarding the takeover and the consequences for the UK workforce. Will we see Lord Mandelson step back into the fray and air his very personal and very critical views yet again?

While there is no doubt that Kraft Foods has reneged on a number of "loose promises", the truth is that the company paid £11 billion for Cadbury and is certain to want to make cost savings and adjustments as soon as possible.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details