Unilever has agreed to protect the employment terms of workers in its European and British food business for two years after its planned merger with McCormick.
The guarantee is longer than the protection typically offered under European and British rules for such transactions.
Trade unions welcomed the move but urged the company to extend similar safeguards to employees outside Europe.
What's Behind Unilever's Two-Year Job Terms Guarantee After McCormick Merger?
The company has agreed to safeguard employment terms for its European and British food business employees for two years after the planned completion of its merger with McCormick
Summary
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Unilever has agreed to protect the employment terms of workers in its European and British food business for two years after the planned completion of its $65 billion merger of the unit with US spice maker McCormick, according to a Reuters report citing a memo seen by the news agency.
The guarantee, which will remain in place until at least mid-2029, is longer than the protection usually provided in similar corporate transactions. It will preserve employees' pay and existing employment terms even if business conditions change after the merger.
The agreement covers employees in the food business across Europe and Britain, where Unilever employs around 4,800 people.
Protection Goes Beyond Standard Rules
In a memo to employees, the European Works Council said it had secured commitments on the "long-term protection of existing terms and conditions" for affected workers.
European Union and British rules generally allow employee contracts and collective agreements to be renegotiated one year after a business sale or spin-off. The new agreement extends that protection for an additional year.
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A Unilever spokesperson told Reuters the company had "made good progress" in discussions with European and national works councils and had agreed to protect employee terms while also setting consultation timelines.
Unions Seek Similar Safeguards Worldwide
The merger, announced in March, is expected to be completed in mid-2027. However, the European Works Council had earlier warned that the deal could result in job losses and prolonged uncertainty for employees.
Trade unions have been negotiating with Unilever since the merger announcement to secure guarantees for workers. The publication reported that the two-year protection is shorter than the three-year commitment offered during Unilever's separation of its Magnum ice cream business.
Sarah Meyer, assistant general secretary of the global trade union federation IUF, said she hoped similar protections would be extended to employees outside Europe, adding that workers elsewhere should not receive fewer safeguards than their European counterparts.
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