Kraft split creates 2 cash cows, multiple challenges for unions

15-10-2012

The long-announced split became official on October 2, but shareholders got a big surprise: it is Mondelez, not the new North American grocery company Kraft Foods Group (KRFT) which has inherited the former Kraft Foods Inc. enormous debt! All the debt has gone to Mondelez, where workers will be consigned to paying the interest charges in an organization driven by aggressive cost-cutting.

The new Kraft Foods Group, on the other hand, has announced a target dividend 50% greater than what the old, pre-split Kraft Foods Inc. was paying - at a time when Kraft's grocery business has seen declining margins and gross profits.

The split has created two cash cows for investors, and multiple challenges for workers.

Read the full story in the latest Kraft/Mondelez Union Network - download and distribute here! [1]

The International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations (IUF) is an international federation of trade unions representing workers employed in agriculture and plantations; the preparation and manufacture of food and beverages; hotels, restaurants and catering services; all stages of tobacco processing. The IUF is composed of 394 affiliated organizations in 126 countries representing a combined membership of around 2,6 million.

How to contact the IUF:
Email: [email protected]
Post: Rampe du Pont-Rouge, 8, CH-1213, Petit-Lancy (Switzerland)
Phone: + 41 22 793 22 33
Fax: + 41 22 793 22 38

Links:
[1] http://cms.iuf.org/sites/cms.iuf.org/files/KraftMondeleztUnionNetwork15102012_0.pdf