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The Hindu
2 days ago
- Business
- The Hindu
Ivory Coast workers say Unilever is violating their union rights amid share sale, documents show
Unilever workers in Ivory Coast say the global consumer goods giant is violating their collective bargaining agreement in refusing to ensure severance pay if layoffs take place after the company sells its business there, documents show. British-based Unilever is selling all of its shares in its struggling Ivory Coast unit, which employs some 160 people, to a local consortium of investors led by wholesale distributor Société de Distribution de Toutes Marchandises Côte d'Ivoire (SDTM). Unilever Cote d'Ivoire manages the consumer giant's domestic and international brands in Ivory Coast, but SDTM will only take over Unilever's domestic brand business, according to an internal memo dated April 8. Unilever has not said how its international brands will be sold in Ivory Coast in future. Workers began staging protests at Unilever offices in Abidjan on April 25, fearing the unit's falling turnover in recent years and the loss of the international brand business will trigger layoffs after the sale, which is expected to close by June 20. Their collective bargaining agreement with Unilever, seen by Reuters, states that in the event of layoffs associated with disposing of its Ivory Coast business, Unilever will give employees severance pay equal to "one month of average gross salary per year of seniority, with a maximum of 18 months." The bargaining agreement, dated from 2004, was confirmed by management in 2007 and remains valid, according to Lex Ways lawyer Soualiho Lassomann Diomande, who represents local staff. The agreement also pledges "medical coverage for a maximum period of six months." A Unilever spokesperson did not comment on the agreement. However, in a meeting at the Labor Inspectorate in Abidjan on April 25, the head of Unilever Cote d'Ivoire, Arona Diop, stated that workers' rights and salaries would be decided by SDTM, and not regulated by the collective bargaining agreement, according to minutes of the meeting reviewed by Reuters. Unilever confirmed it was selling the Ivory Coast unit but said in a statement to Reuters: "the proposed transaction is by way of a sale of shares, which does not result in the termination of employees' contracts." "Severance pay is not therefore relevant, as employment continues," it added. Unilever's international brand portfolio has accounted for more than 60% of Unilever Cote d'Ivoire's turnover, according to three Ivory Coast employees, which totalled 34.6 billion CFA Franc in 2023. Since the share sale excludes the most important brands, job security is at risk, said Diomande. Moreover, under article 16.6 of the Ivorian Labor Code, any substantial modification of an employment contract requires the prior agreement of the employee, Diomande added. "No assurances have been given regarding job security," said a Unilever Ivory Coast employee, who did not wish to be named. Contrast with Europe The severance rights Unilever guaranteed under the collective bargaining agreement are a lot more generous than required under Ivory Coast labour law, according to Diomande as well as two workers interviewed by Reuters. According to the International Labor Organization's EPLex database website, workers in Ivory Coast are entitled to severance pay equal to 30% of their gross monthly wage per year for those who have worked up to five years. The percentage rises to 35% from the sixth to the 10th year and 40% for above 10 years of service. Unilever said early last year it would axe 7,500 jobs globally as part of a turnaround to save about 800 million euros ($913.12 million). Diomande said Unilever's treatment of its Ivory Coast staff contrasted sharply with how it treated staff in Europe. Last month Unilever agreed to guarantee its ice cream workers' employment terms in Europe and Britain for at least three years after the business' spin-off, Reuters reported, tripling the usual period in such deals despite no legal requirement to do so. The generous terms agreed in Europe reflect the power of local unions and strict labour laws on the continent. Workers in the Ivory Coast told Reuters they had asked Unilever to guarantee the same conditions, including severance pay, for two years, one less than what was granted to roughly 6,000 Unilever workers affected by the ice cream spin off in Europe and Britain. "Not applying the same conditions in Ivory Coast is unequal treatment and negative discrimination," Diomande said. "This is a serious injustice."
Yahoo
2 days ago
- Business
- Yahoo
Exclusive-Ivory Coast workers say Unilever is violating their union rights amid share sale, documents show
By Richa Naidu LONDON/ABIDJAN (Reuters) -Unilever workers in Ivory Coast say the global consumer goods giant is violating their collective bargaining agreement in refusing to ensure severance pay if layoffs take place after the company sells its business there, documents show. British-based Unilever is selling all of its shares in its struggling Ivory Coast unit, which employs some 160 people, to a local consortium of investors led by wholesale distributor Société de Distribution de Toutes Marchandises Côte d'Ivoire (SDTM). Unilever Cote d'Ivoire manages the consumer giant's domestic and international brands in Ivory Coast, but SDTM will only take over Unilever's domestic brand business, according to an internal memo dated April 8. Unilever has not said how its international brands will be sold in Ivory Coast in future. Workers began staging protests at Unilever offices in Abidjan on April 25, fearing the unit's falling turnover in recent years and the loss of the international brand business will trigger layoffs after the sale, which is expected to close by June 20. Their collective bargaining agreement with Unilever, seen by Reuters, states that in the event of layoffs associated with disposing of its Ivory Coast business, Unilever will give employees severance pay equal to "one month of average gross salary per year of seniority, with a maximum of 18 months." The bargaining agreement, dated from 2004, was confirmed by management in 2007 and remains valid, according to Lex Ways lawyer Soualiho Lassomann Diomande, who represents local staff. The agreement also pledges "medical coverage for a maximum period of six months." A Unilever spokesperson did not comment on the agreement. However, in a meeting at the Labor Inspectorate in Abidjan on April 25, the head of Unilever Cote d'Ivoire, Arona Diop, stated that workers' rights and salaries would be decided by SDTM, and not regulated by the collective bargaining agreement, according to minutes of the meeting reviewed by Reuters. Unilever confirmed it was selling the Ivory Coast unit but said in a statement to Reuters: "the proposed transaction is by way of a sale of shares, which does not result in the termination of employees' contracts." "Severance pay is not therefore relevant, as employment continues," it added. Unilever's international brand portfolio has accounted for more than 60% of Unilever Cote d'Ivoire's turnover, according to three Ivory Coast employees, which totalled 34.6 billion CFA Franc in 2023. Since the share sale excludes the most important brands, job security is at risk, said Diomande. Moreover, under article 16.6 of the Ivorian Labor Code, any substantial modification of an employment contract requires the prior agreement of the employee, Diomande added. "No assurances have been given regarding job security," said a Unilever Ivory Coast employee, who did not wish to be named. CONTRAST WITH EUROPE The severance rights Unilever guaranteed under the collective bargaining agreement are a lot more generous than required under Ivory Coast labour law, according to Diomande as well as two workers interviewed by Reuters. According to the International Labor Organization's EPLex database website, workers in Ivory Coast are entitled to severance pay equal to 30% of their gross monthly wage per year for those who have worked up to five years. The percentage rises to 35% from the sixth to the 10th year and 40% for above 10 years of service. Unilever said early last year it would axe 7,500 jobs globally as part of a turnaround to save about 800 million euros ($913.12 million). Diomande said Unilever's treatment of its Ivory Coast staff contrasted sharply with how it treated staff in Europe. Last month Unilever agreed to guarantee its ice cream workers' employment terms in Europe and Britain for at least three years after the business' spin-off, Reuters reported, tripling the usual period in such deals despite no legal requirement to do so. The generous terms agreed in Europe reflect the power of local unions and strict labour laws on the continent. Workers in the Ivory Coast told Reuters they had asked Unilever to guarantee the same conditions, including severance pay, for two years, one less than what was granted to roughly 6,000 Unilever workers affected by the ice cream spin off in Europe and Britain. "Not applying the same conditions in Ivory Coast is unequal treatment and negative discrimination," Diomande said. "This is a serious injustice." ($1 = 571.0000 CFA francs) ($1 = 0.8761 euros)
Yahoo
2 days ago
- Business
- Yahoo
Exclusive-Ivory Coast workers say Unilever is violating their union rights amid share sale, documents show
By Richa Naidu LONDON/ABIDJAN (Reuters) -Unilever workers in Ivory Coast say the global consumer goods giant is violating their collective bargaining agreement in refusing to ensure severance pay if layoffs take place after the company sells its business there, documents show. British-based Unilever is selling all of its shares in its struggling Ivory Coast unit, which employs some 160 people, to a local consortium of investors led by wholesale distributor Société de Distribution de Toutes Marchandises Côte d'Ivoire (SDTM). Unilever Cote d'Ivoire manages the consumer giant's domestic and international brands in Ivory Coast, but SDTM will only take over Unilever's domestic brand business, according to an internal memo dated April 8. Unilever has not said how its international brands will be sold in Ivory Coast in future. Workers began staging protests at Unilever offices in Abidjan on April 25, fearing the unit's falling turnover in recent years and the loss of the international brand business will trigger layoffs after the sale, which is expected to close by June 20. Their collective bargaining agreement with Unilever, seen by Reuters, states that in the event of layoffs associated with disposing of its Ivory Coast business, Unilever will give employees severance pay equal to "one month of average gross salary per year of seniority, with a maximum of 18 months." The bargaining agreement, dated from 2004, was confirmed by management in 2007 and remains valid, according to Lex Ways lawyer Soualiho Lassomann Diomande, who represents local staff. The agreement also pledges "medical coverage for a maximum period of six months." A Unilever spokesperson did not comment on the agreement. However, in a meeting at the Labor Inspectorate in Abidjan on April 25, the head of Unilever Cote d'Ivoire, Arona Diop, stated that workers' rights and salaries would be decided by SDTM, and not regulated by the collective bargaining agreement, according to minutes of the meeting reviewed by Reuters. Unilever confirmed it was selling the Ivory Coast unit but said in a statement to Reuters: "the proposed transaction is by way of a sale of shares, which does not result in the termination of employees' contracts." "Severance pay is not therefore relevant, as employment continues," it added. Unilever's international brand portfolio has accounted for more than 60% of Unilever Cote d'Ivoire's turnover, according to three Ivory Coast employees, which totalled 34.6 billion CFA Franc in 2023. Since the share sale excludes the most important brands, job security is at risk, said Diomande. Moreover, under article 16.6 of the Ivorian Labor Code, any substantial modification of an employment contract requires the prior agreement of the employee, Diomande added. "No assurances have been given regarding job security," said a Unilever Ivory Coast employee, who did not wish to be named. CONTRAST WITH EUROPE The severance rights Unilever guaranteed under the collective bargaining agreement are a lot more generous than required under Ivory Coast labour law, according to Diomande as well as two workers interviewed by Reuters. According to the International Labor Organization's EPLex database website, workers in Ivory Coast are entitled to severance pay equal to 30% of their gross monthly wage per year for those who have worked up to five years. The percentage rises to 35% from the sixth to the 10th year and 40% for above 10 years of service. Unilever said early last year it would axe 7,500 jobs globally as part of a turnaround to save about 800 million euros ($913.12 million). Diomande said Unilever's treatment of its Ivory Coast staff contrasted sharply with how it treated staff in Europe. Last month Unilever agreed to guarantee its ice cream workers' employment terms in Europe and Britain for at least three years after the business' spin-off, Reuters reported, tripling the usual period in such deals despite no legal requirement to do so. The generous terms agreed in Europe reflect the power of local unions and strict labour laws on the continent. Workers in the Ivory Coast told Reuters they had asked Unilever to guarantee the same conditions, including severance pay, for two years, one less than what was granted to roughly 6,000 Unilever workers affected by the ice cream spin off in Europe and Britain. "Not applying the same conditions in Ivory Coast is unequal treatment and negative discrimination," Diomande said. "This is a serious injustice." ($1 = 571.0000 CFA francs) ($1 = 0.8761 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
13-03-2025
- Business
- Zawya
French grip muddles Ecowas single currency bid. What's next?
West African countries are pushing ahead with the creation of a single currency, despite the inherent difficulties, and have set themselves a fifth deadline of July 2027. The push for a common monetary system has been postponed several times since the first attempt in 2003, to 2005, 2010 and 2014. It also comes as France seeks to undermine the move, which it sees as a threat to its decades-old stranglehold on the monetary policy of former colonies in West Africa. Last week, member states of the Economic Community of West African States (Ecowas) resolved to launch its planned single currency for the 15 countries after decades of failed attempts. Ecowas has been struggling to keep its membership intact after Mali, Burkina Faso and Niger, all junta-led states, decided to quit the bloc in January and sever ties with France. But Ecowas leaders decided to keep the door open for cooperation with the three countries, and allowed their nationals to continue enjoying free movement between member states. France jumped the gunThe new currency, to be established in 2027, has been dubbed the 'Eco', but France already jumped the gun and changed the name of the CFA Franc, the currency used in its former colonies in West Africa, to the eco, angering several Ecowas leaders. For the West African bloc, the quest for a single currency is aimed at fostering economic stability, boosting trade and facilitating seamless transactions between its member states, according to a dispatch pitching the idea. The West African Monetary Zone (WAMZ), a major stakeholder in the realisation of the single currency, however, has expressed doubts on the deadline because Ecowas states have not met all the necessary criteria. Dr Olorunsola Olowofeso, the Director-General of WAMZ, told the Ecowas Committee of Governors of the Central Banks on March 6, that it was unlikely that any of the member states would meet all four primary convergence criteria on a sustainable basis between 2024 and 2026.'The quest for a single currency by WAMZ will take much longer to achieve as the convergence indicators have declined significantly,'' he said. The differences in economic policies, inflation rates and budget deficits between member states pose considerable challenges to meeting these convergence criteria. Read: Why Ecowas suspended single currency launchMoreover, France's 2019 decision to rally francophone countries like Benin, Burkina Faso, Guinea-Bissau (Portuguese-speaking), Cote d'Ivoire, Mali, Niger, Senegal and Togo to announce the renaming of CFA Franc to eco was already a sign of a divided bloc. Nigeria, Sierra Leone, Ghana, Liberia and Gambia, all English-speaking, and Guinea (francophone) rejected the adoption of eco by the French-speaking nations. They argued the move was sabotage and designed to keep France as the currency reserve headquarters of its former colonies. Prof Sam Smah, a sociologist at the National Open University in Nigeria, said France's opposition and its insistence on renaming the CFA franc was a decoy: Paris retained much of its current control over monetary policy. Read: Many pitfalls in reform of Africa's CFA francFrance has maintained control over these countries' monetary policies and has had unfettered access to African markets and strategic natural resources, such as Niger's uranium or Guinea's bauxites. Anti-French sentimentThe recent rise in anti-French sentiment in these countries has been attributed to frustration with French control. Niger, Burkina Faso and Mali have implemented a series of policy decisions meant to cut French control, including reducing the monopolies of French mining firms and charging hefty royalties on Western miners. They also expelled French troops on their soil. Read: France in Africa: Why Macron's policies increased distrust and angerSuleyman G Konte, an expert on African affairs, argues that the French arrangement, which Ecowas countries oppose, would mean that the eco remains pegged to the euro. He said this deal will force African countries to keep 50 percent of their financial reserves in the French Treasury, effectively depriving African banks of billions of dollars in deposits. Konte estimates that African countries lose as much as $400 billion a year due to this 60-year French arrangement.'Ecowas regional heavyweights - Nigeria and Ghana – as well as most of the Anglophones in the bloc have already publicly rejected potential French influence on the regional eco,'' he pointed out. Read: Why Sahel is turning its back on FranceOther obstaclesLast week, Ecowas convened the 11th Convergence Council in Abuja, bringing together top financial leaders, including finance ministers and central bank governors, to further discuss plans for the much-anticipated eco currency launch by 2027. Mohammed Manga, director of information and public relation at Nigeria's finance ministry, said his country emphasised the need for monetary and fiscal discipline, even as it identified security challenges, inflation, and global economic disruptions as potential hurdles.'This is our opportunity to shape the future of our region... [it will] send a powerful message about the region's commitment to global economic stability and prosperity,' he said. But for a single currency to work, the leaders admit they must maintain the pace of recovery from Covid-19 intact.'It has become imperative for member states to continue to implement prudent fiscal, monetary and exchange rate policies and adopt measures aimed at enhancing domestic revenue mobilisation and diversification of our economies,' said Ken Ofori-Atta, Ghana's former finance minister. According to him, the road to a single currency regime and economic integration has already been too long. Critics say that the idea of a unified currency should not be a priority. They argue that regional leaders should instead focus more on boosting trade within the bloc.'West African countries must transform their economies, with diversification and value-add industries,' said Sanyade Okoli of Alpha African Advisory, a consulting firm. Felix Awanbor, a financial analyst, said a single currency could result in individual countries not being able to tailor their monetary policies to their specific economic needs, and could lead to imbalances within the region due to differences in economic growth and inflation rates. It could also create political challenges as some countries may feel that their interests are not adequately represented, he added. Awanbor cited a lack of flexibility in economic management, the dominance of bigger economies over smaller ones, political hurdles, and blockage of fiscal policy adjustments as other obstacles. He advised the countries to study the model of the European Union's eurozone, where a common currency has worked for two decades. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
