Kraft Foods Romania Employees, Mgmt Continue Dispute Over Severance Pay

Unionists of candy and coffee maker Kraft Foods Romania, which will shut down its chocolate factory in Brasov, central Romania, said the management on Thursday offered an ultimatum, urging them to accept its severance pay for employees, but the company’s general manager, Lacklan Grave, dismissed any allegations.

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Imaginea articolului Kraft Foods Romania Employees, Mgmt Continue Dispute Over Severance Pay

Kraft Foods Romania Unionists, Mgmt Continue Dispute Over Severance Pay Issue

Union leader Dragos Grigore said he is constantly in touch with his colleagues from Kraft plants in the European Union who, according to him, told him not to accept "the management’s blackmail."

He said the employees disagree with the management’s offer, as an employee with a seniority of twenty years will receive severance payments representing six salaries, while an employee with a seniority of over twenty years will receive nine salaries.

Unionists stressed they are still open to negotiations in 2009 regarding the severance package for employees.

Comment Kraft Foods Romania corporate affairs manager Doina Cavache, declined to comment on the matter, but denied the existence of an "ultimatum" for the employees, stressing, however, the management and the unionists are currently in talks.

Kraft Foods Romania said it would shut down its factory in Brasov by end 2009 and will relocate to Svoge, a small province town in Bulgaria. The first layoffs start in April 2009, and the unit’s 440 are to receive severance pay.

The company cited lack of expansion space as the reason for its decision, but although local authorities said they are willing to offer bigger lands, the decision was not overturned.

The company entered the Romanian market in 1994, when Kraft Foods International bought the local candy factory in Brasov, Poiana Produse Zaharoase.

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