Unilever works council warns of union action if workers are not protected in McCormick deal

By Richa Naidu

LONDON, March 31 (Reuters) – Unilever’s European works council is worried about job losses from the company’s food merger with McCormick, warning that it was stoking uncertainty and could lead to union action.

Unilever and McCormick on Tuesday announced a deal to combine Unilever’s food business with the U.S. spice maker and create a $65 billion food giant. That could result in brands such as Hellmann’s mayonnaise being spun off and put under the same roof as McCormick’s Cholula hot sauce.

“We fear that a possible transaction could be accompanied by further personnel measures,” the Unilever European Works Council (UEWC) which represents nearly 20,000 employees in Europe and Britain, told Reuters.

“Uncertainty among the workforce is high.”

Pushback from workers and unions could add to the challenge for Unilever and CEO Fernando Fernández, who is driving a major turnaround at the British company, aiming to simplify the business, cut costs and sharpen its focus on health and beauty.

The UEWC said it would turn to the trade unions it works with to discuss what action might be taken if Unilever does not “find good solutions for affected employees”.

“It could lead from negotiations to maybe strikes in different countries where that is possible. It depends on the legislation around Europe,” the UEWC said.

When asked about the potential job cuts and union action on a call with reporters, Unilever CEO Fernández said the company would initiate consultation with the UEWC as soon as possible.

The company has 4,800 food business employees in Europe and Britain, roughly a third of its total workforce in the region.

(Reporting by Richa NaiduEditing by Adam Jourdan and David Goodman)