IUF accuses Unilever of ‘Double Standards’ over worker pay after McCormick deal
The union is seeking equal two-year pay and benefits protection for employees affected by Unilever’s food assets transaction with McCormick.
UK – The IUF union has accused Unilever of applying “double standards” to pay and benefits protections for workers in Europe and other regions over its food assets deal with McCormick.
The criticism follows a July disclosure that Unilever had agreed with its European Works Council to maintain existing pay and benefits for two years after completion of the transaction.
Outside Europe, transferred employees are expected to receive broadly similar pay and benefits for one year, according to the Switzerland-based IUF.
Unilever announced in March that it would sell most of its food assets to McCormick for $44.8 billion. The transaction is expected to close by the middle of next year and faces UK CMA scrutiny.
The IUF said restructuring linked to the deal had generated “uncertainty and anxiety” among employees.
“Unilever has indicated that, outside Europe, transferred employees who remain with the new combined business will, as a baseline, receive overall pay and benefits broadly similar to those they had before the transfer, for one year following completion,” the union said.
“In Europe, however, an agreement between the Unilever European Works Council and the company provides this protection for two years.”
The IUF criticised Unilever for not extending protection globally. It said the company refuses to engage on this at an international level and has indicated that unions outside Europe should negotiate locally or regionally over the two-year protection.
The union is seeking a universal two-year commitment and said Unilever places greater value on European workers than those elsewhere.
A Unilever spokesperson said the company was continuing discussions with employee representatives during separation.
“We continue to engage constructively with our works councils and other employee representatives and have made good progress,” the spokesperson told Just Food.
“As a global company, we engage with a range of representatives around the world. Our focus remains on supporting our people and engaging them with care and transparency throughout the separation process.”
Hermann Soggeberg, chairman of Unilever’s European Works Council, also called for the protection to be extended globally.
“While we welcome the commitment made by the company to provide two years protection in Europe, this should also apply to all other impacted workers around the globe,” Soggeberg said.
The IUF has also called on McCormick to provide equal worker rights after the deal.
The CMA is conducting a Phase I investigation into the transaction to assess its potential impact on competition.
The regulator launched the review despite Unilever’s commitment to sell its Colman’s mustard brand, which will no longer form part of the McCormick transaction.
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