Unilever Extends European Ice Cream Workers' Employment Terms by 200%

Unilever, the parent company of Ben & Jerry's, has pledged to safeguard the employment terms of its ice cream workers in Europe for at least three years following the division of its ice cream business. This commitment extends beyond the typical one-year period stipulated by EU and UK laws for renegotiating employee contracts and collective agreements post-business sale or division. The decision ensures that the newly formed ice cream company will maintain a three-year agreement, preserving the compensation and benefits of European employees despite any operational uncertainties or changes.

In March 2024, Unilever announced its plan to separate its ice cream business, which includes five of the world's top ten ice cream brands, such as Magnum and Walls. The company also revealed plans to reduce its global workforce by 7,500 employees to cut costs. Initially, around 3,200 jobs in Europe were expected to be cut, but this number was nearly halved through the transfer of employees to the ice cream division. The new ice cream business will be primarily listed in Amsterdam.

A memo reviewed by the company indicated that after nearly a year of negotiations, the European Works Council wrote to Unilever employees stating, "Working conditions will be protected for at least three years and will not deteriorate." Unilever did not respond to requests for comment.

A source familiar with the negotiations for the new company's European business revealed that approximately 6,000 employees in the ice cream division will maintain their compensation, bonuses, stock options, pensions, and vacation benefits. The source also stated that the business unit is not expected to undergo further layoffs. The business generated 8.3 billion euros in sales in 2024 and will be renamed "The Magnum Ice Cream Company." The business is expected to begin operating as an independent company under Unilever on July 1 and complete the separation by the end of the year.

The source also mentioned that the independent directors of Ben & Jerry's did not participate in the negotiations with the European Works Council and were not consulted. Over the past year, Unilever has been involved in a heated legal dispute with the independent directors of Ben & Jerry's, one of its largest brands. The directors accused Unilever of suppressing the Vermont-based company, including its political statements, and damaging its ability to fulfill its social mission.

This commitment by Unilever to maintain employment terms for its ice cream workers in Europe reflects a strategic move to ensure stability and continuity for its workforce amidst significant organizational changes. By extending the protection period to three years, Unilever aims to mitigate the impact of the business division on its employees, providing them with a sense of security during a transitional phase. This decision also aligns with Unilever's broader corporate responsibility initiatives, demonstrating its commitment to supporting its workforce through challenging times.

The decision to maintain employment terms for three years is particularly significant given the current economic climate and the uncertainties surrounding business operations. By locking in a three-year agreement, Unilever ensures that European employees will not face immediate changes to their compensation and benefits, regardless of the operational environment. This approach not only supports the employees but also helps maintain the stability and productivity of the ice cream business during the transition period.

Unilever's commitment to its ice cream workers in Europe is a testament to its dedication to corporate social responsibility and employee welfare. By prioritizing the well-being of its workforce, Unilever sets a positive example for other companies navigating similar organizational changes. This decision underscores the importance of considering the human impact of business decisions and taking proactive measures to support employees during times of transition.