Unilever accused of “double standards” for workers post McCormick merger

Unilever accused of “double standards” for workers post McCormick merger

Simon Harvey

Thu, September 17, 2026 at 3:46 PM GMT+3 3 min read

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The IUF union has accused Unilever of "double standards" in pay and benefits negotiations for workers in and outside of Europe post the McCormick deal.

It emerged in July the London-headquartered FMCG major had made a commitment to European employees to honour existing pay and benefits for two years after the completion of the tie-up with US-based McCormick & Co.

However, similar arrangements for staff outside of Europe are for a shorter one-year period, according to Switzerland-based IUF, which represents the food, drinks, agricultural and hospitality industries.

Unilever, which is listed in London, Amsterdam and New York, announced in March it was selling most of its food assets to McCormick for $44.8bn. The transaction is expected to close by the middle of next year but has already attracted the scrutiny of the UK's Competition and Markets Authority (CMA).

The IUF claims the "associated restructuring and consolidation have once again generated uncertainty and anxiety among workers across the business".

The union added in a statement: "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.

"In Europe, however, an agreement between the Unilever European Works Council and the company provides this protection for two years."

Just Food asked Unilever to comment on the "double standard" accusations made by the IUF but the Knorr and Marmite brand owner only provided a limited statement.

A spokesperson said: "We continue to engage constructively with our works councils and other employee representatives and have made good progress.

"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."

While the IUF said Unilever's staff engagements were a "positive development", the union criticised the business for not offering the same rights to all its workers, adding it "condemns the position the company has taken".

The IUF claims Unilever "refuses to engage on this at an international level and has indicated that, outside of Europe, unions should negotiate locally or regionally over the two years' protection".

It is seeking a universal two-year "commitment" for all Unilever's employees, with IUF asserting that the company "places greater value on European workers than those elsewhere".

Meanwhile, the IUF cited a comment made by Hermann Soggeberg, the chairman of Unilever's European Works Council.

"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 was quoted as saying.

The IUF also called on McCormick to provide equal treatment for all workers' rights post the merger. Just Food has asked the Schwartz spices, French's mustard and Cholula hot sauces brand owner for comment.

Kristjan Bragason, the IUF's acting general secretary, said in the union's statement: "Unilever and McCormick must walk the talk; they must demonstrate that they back up their commitments with actions and ensure that all workers are granted the same protections and rights."

McCormick's deal for most of Unilever's food assets is being investigated by the CMA to ascertain if the transaction will have any impact on competition.

The regulator said yesterday (16 September) it was launching a Phase I enquiry into the deal despite Unilever pledging to sell its Colman's mustard brand, which will now not be part of the McCormick merger.

"Unilever accused of "double standards" for workers post McCormick merger" was originally created and published by Just Food, a GlobalData owned brand.