Kraft to discuss Cadbury plans with UK union

Kraft Foods Inc., the food company seeking to buy Cadbury Plc for 10.3 billion pounds ($17 billion), is scheduled to discuss its plans for the U.K. candy maker with labor representatives tomorrow, the Unite trade union said.

The union, Britain's biggest, is seeking guarantees on pensions, jobs and working conditions should Kraft acquire the maker of Dairy Milk chocolate, Unite spokeswoman Pauline Doyle said today by telephone. Tomorrow's meeting will be "our first proper discussion" with the U.S. food producer, she said.

The union wants assurances from Kraft that there will be no compulsory redundancies and no changes to terms and conditions for at least five years after a takeover of Cadbury, Doyle said. The Unite delegation will be led by the union's head of food, drink and tobacco, Jennie Formby, she said.

Kraft spokesman Richard Johnson confirmed that a meeting with Unite will take place tomorrow morning. The maker of Oreo cookies is "looking to have a constructive dialog," he said. Kraft, led by Chief Executive Officer Irene Rosenfeld, made an unsolicited approach for Cadbury two months ago.

Cadbury shares rose to a record yesterday after Nestle SA was said to weigh a takeover, the Wall Street Journal said Hershey Co.'s controlling trust wants the U.S. company to make an offer, and Reuters reported that Kraft may raise its bid.

Unite is "also looking at what a Hershey bid would mean if one was made," Doyle said.