Unilever has reportedly reached an agreement to secure employment conditions for its ice cream division employees across Europe and the UK for three years following the unit’s spin-off.
Citing a memo, Reuters reported that this move extends protections to workers for triple the standard duration mandated under EU and British law, where renegotiations of employment terms are typically permitted just one year after a divestiture.
The deal ensures that contractual terms and collective bargaining agreements cannot be revised or diminished for at least three years, providing significant continuity for around 6,000 workers amid a major corporate restructuring.
Spin-Off Strategy Shields Workers from Immediate Layoffs
In March 2024, Unilever revealed its intention to carve out its ice cream operations, a portfolio that includes globally recognised brands such as Magnum and Wall’s. The strategic spin-off is part of a broader cost-cutting initiative that will see 7,500 job reductions across the company. Of these, an estimated 3,200 layoffs were initially projected to occur in Europe.
However, in a shift reported by Reuters in November, this figure has been nearly halved, as many staff members were reassigned to roles within the new ice cream entity.
This soon-to-be standalone business will be primarily listed in Amsterdam and will operate under the name The Magnum Ice Cream Company, the report noted.
It recorded €8.3 billion ($9.4 billion) in sales in 2024 and is scheduled to formally launch as a separate firm on July 1, still under the Unilever umbrella until the demerger concludes later in the year.
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Terms Safeguard Pay, Benefits and Working Conditions
The commitment to retain current employee benefits—including salaries, holiday entitlements, pensions, bonuses, and participation in share schemes—was confirmed in a memo distributed by the European Works Council to Unilever’s staff, the report stated. The agreement follows almost a year of negotiations and ensures that “working conditions will be protected for at least three years and cannot be worsened,” the memo stated.
Citing a person familiar with the discussions involving Mustafa Seçkin, who will chair the European arm of the new business, the report indicated that no significant additional layoffs are anticipated.
Ben & Jerry’s Board Not Involved in Deal-Making
Although Ben & Jerry’s is one of the most prominent brands in the ice cream unit, its independent board members were not part of the talks with the European Works Council. The same source noted they were not consulted during the negotiations.
Unilever has been entangled in a contentious legal dispute with Ben & Jerry’s independent board for nearly a year. The board has accused the parent company of restricting the brand’s ability to express political opinions and uphold its established social mission.
