Unilever faces union pushback over unequal worker protections in $44.8bn McCormick deal
The IUF, a Switzerland-based union representing food, drinks, agricultural and hospitality workers, has accused Unilever of applying "double standards" in the labor transition terms attached to its $44.8bn sale of most food assets to US-based McCormick & Co. European employees being transferred into the combined business will receive two years of pay and benefits protection after completion, secured through the Unilever European Works Council. Workers outside Europe, the union says, have a one-year baseline, and the IUF is demanding both companies extend the European standard globally.
Key takeaways
- The IUF union accuses Unilever of applying "double standards" in worker protections tied to its $44.8bn sale of most food assets to McCormick & Co.
- European employees transferred into the combined business get two years of pay and benefits protection, while workers outside Europe have a one-year baseline.
- The IUF is demanding that Unilever and McCormick extend the two-year European protection standard to all impacted workers globally.
- The UK's Competition and Markets Authority launched a Phase I enquiry into the transaction on September 16, even after Unilever agreed to sell Colman's mustard separately.
- The deal was announced in March with completion expected around the middle of next year.
The IUF, a Switzerland-based union representing food, drinks, agricultural and hospitality workers, has accused Unilever of applying "double standards" in the labor transition terms attached to its $44.8bn sale of most food assets to US-based McCormick & Co. European employees being transferred into the combined business will receive two years of pay and benefits protection after completion, secured through the Unilever European Works Council. Workers outside Europe, the union says, have a one-year baseline, and the IUF is demanding both companies extend the European standard globally.
Unilever, which trades in London, Amsterdam and New York, announced the food assets deal in March, with completion expected around the middle of next year. The two-tiered protection arrangement came to light in July. The UK's Competition and Markets Authority added a further complication on September 16 when it launched a Phase I enquiry into the transaction, a step the regulator took even after Unilever agreed to sell its Colman's mustard brand separately and keep it out of the McCormick deal.
What the union is asking for
The IUF says Unilever "refuses to engage on this at an international level" and has directed non-European unions to negotiate locally or regionally instead. Kristjan Bragason, the union's acting general secretary, said Unilever and McCormick "must walk the talk" and ensure all workers receive the same rights. Hermann Soggeberg, chairman of the Unilever European Works Council, backed that position, saying the two-year protection "should also apply to all other impacted workers around the globe."
Unilever's response did not address the two-year gap directly. A spokesperson said the company is engaging "constructively" with works councils and remains focused on supporting employees "with care and transparency throughout the separation process." The IUF called those engagements a "positive development" but said it "condemns the position the company has taken."
What to watch
McCormick has been asked to comment on the IUF's demands but had not responded as of this reporting. The deal transfers Unilever food brands including Knorr and Marmite into a combined business that also includes McCormick's Schwartz spices, French's mustard and Cholula hot sauces. With deal close expected around the middle of next year and the CMA Phase I enquiry now open, the next marker is whether either company commits to the IUF's two-year standard before the transaction goes final.
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Filed by the newsroom of MarketPR on September 17, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.