Union warns of threat to jobs in Carlsberg’s takeover of Britvic

The Unite union has sounded the alarm over hundreds of possible job losses from Carlsberg’s bid to acquire Britvic for £3.3 billion.

The union has demanded urgent talks with the Danish brewer to address concerns about its plan to cut about 1 per cent of jobs in the combined group if the merger is approved by shareholders.

Carlsberg has offered £13.15 per share for the London-listed Britvic as it seeks to increase its sales of non-alcoholic drinks. Britvic is the biggest maker of branded still soft drinks in Britain and Carlsberg is seeking ways to serve a younger, more moderate generation of drinkers by growing its “Beyond Beer” segment of products.

Britvic’s board has recommended that its shareholders accept the deal in a vote planned for August 27, but Unite has pushed back against plans to cut jobs throughout the group’s combined workforce of 34,500. The union has written to Britvic to express concerns about most of the possible 345 job losses falling in the UK. Carlsberg has pledged to “accelerate commercial and supply chain investments” at Britvic to help the company to grow.

Unite fears that “most of the synergies might be realised in the UK” and that the impact on the operations could be “significant”. The union also has said that “it is vital that the voice or workers is heard” during a review of the combined entity after the deal is completed.

Carlsberg has promised to hand cash bonuses worth 175 per cent of annual base salaries to between 130 and 180 senior executives. Unite has said that these retention bonuses should be granted to all staff.

“Workers must not be the ones to lose out as a result of this acquisition and we would like to see employee numbers grow in accordance with this commitment from Carlsberg to future growth and career opportunities,” the union said.

“We note that, according to Carlsberg, soft drinks are highly synergistic with beer throughout the value chain. It is vital that we see detailed proposals relating to investment, details that so far are lacking, including in relation to bottling agreements, as the documents disclosed are highly redacted.”

Carlsberg has said in its acquisition documents that any job cuts “will be subject to comprehensive planning and appropriate engagement with stakeholders”, including employees and their representative bodies.

The documents state: “It is anticipated that efforts will be made to mitigate headcount reductions made as a result of redundancies, via natural attrition, the elimination of vacant roles and alternative job opportunities. Any individuals impacted will be treated in a manner consistent with Carlsberg’s high standards, culture and practices.”

Britvic and Carlsberg declined to comment.