Fears for future of 1,600 Cadbury jobs

There were fears for the future of 1,600 jobs at Cadbury's plants in Dublin and Kerry last night after the company announced …

There were fears for the future of 1,600 jobs at Cadbury's plants in Dublin and Kerry last night after the company announced plans to close 20 per cent of its factories worldwide.

The Cadbury Schweppes group said it would be cutting its global workforce of 55,000 by 10 per cent over the next four years.

Union officials are to contact the company today to find out if the rationalisation drive will affect the company's operations in Ireland.

It employs about 1,500 people at its manufacturing plant in Coolock, Dublin, and a further 100 at its factory in Rathmore, Co Kerry.

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Mr Brian O'Neill, of SIPTU, which represents about half the Dublin workforce and all of the employees in Rathmore, said there had been no contact from Cadbury Ireland about the matter.

"I would have assumed that if there were any particular implications for the Irish operation then they would have been in touch. But there has been no indication that any of the jobs in Ireland are under threat."

Nevertheless, he said, it was always a matter of concern when an employer announced a major rationalisation programme of that kind.

"I will be getting in touch with management first thing in the morning to find out what is going on, and whether there are any implications for our members."

The other major union at the Dublin plant is the ATGWU.

Just two weeks ago Cadbury announced the closure of two factories in Manchester and Chesterfield in Britain with the loss of 550 jobs. It employs about 7,000 people in the UK.

It is intended that the economy drive announced yesterday will save the company nearly €600 million by 2007.

The group's chief executive, Mr Todd Stitzer, declined to give details of when or where further cuts would happen. "As and when we take action, people will be spoken to sensitively and thoughtfully."

The company's Irish operation has a turnover in excess of €350 million, and exports more than 90 per cent of its production.

The rationalisation drive follows several years of expansion and acquisitions by Cadbury, which culminated in the €3.8 billion purchase of US chewing gum maker Adams in March this year.

The company said 2003 would be a year of transition following the expansion, which has turned it into one of the world's largest confectionery businesses.

In addition to names including Dr Pepper, Snapple, Trebor and Bassett, the group now boasts Adams's brands such as Halls cough sweets, Trident, Dentyne and Bubbas bubble gum.

The acquisition has given Cadbury more access to the growing gum and medicated sweet markets. But it said the expansion has also left it with a complex organisational structure and a "disproportionate cost base".

Management of Cadbury Ireland could not be contacted yesterday.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times