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Yahoo
13-06-2025
- 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
13-06-2025
- 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
Yahoo
03-06-2025
- Business
- Yahoo
Reckitt eyes new options to advance Air Wick unit sale, sources say
By Amy-Jo Crowley and Richa Naidu LONDON (Reuters) -Britain's Reckitt is considering new options to advance a sale of its Essential Home business, home to Air Wick fresheners and Cillit Bang cleaners, after bids came in below expectations, two people with knowledge of the process said. The company still plans to pursue a sale, the people said, who spoke on condition of anonymity because the talks are private. Private equity firm Advent remains in talks for the assets, one of the people and a third person said. Reckitt, which also makes Mucinex cold medication and Durex condoms, said in July it was looking to offload a portfolio of homecare brands by the end of 2025. The proposed sale comes at a challenging time for businesses with factories around the world as they navigate U.S. President Donald Trump's tariffs, which are roiling supply chains, boosting costs and dampening shopper sentiment. Reckitt could keep a stake in the business or structure a sale another way to bridge a gap in valuations, one of the people said, adding that some of the bids came in below its hopes of over 4 billion pounds ($5.4 billion). Reuters could not determine if other bidders remained in the process. Reckitt and Advent declined to comment. Bankers and CEOs have hit the brakes on mergers and acquisitions since Trump launched his trade war, with fewer deals getting signed than during the bleakest days of the COVID-19 pandemic and the 2008-2009 global financial crisis. Reckitt said in April that it was "continuing to progress" the sale of the Essential Home business but that market conditions might affect the time frame. Consumer staples companies are considered relatively resilient to economic downturns, but big brands like Reckitt, P&G and Unilever increasingly face competition from cheaper private label brands that gained popularity during the pandemic. Reckitt's Essential Home business has struggled for several quarters, with sales falling 7% in the first quarter of this year to 482 million pounds, about 13% of total revenue for the quarter. Reckitt has been undergoing a turnaround under CEO Kris Licht, who has sought to reassure shareholders concerned about the strength of the company's brands in North America and Europe, where consumer confidence has been dwindling. ($1 = 0.7397 pounds) Sign in to access your portfolio
Yahoo
03-06-2025
- Business
- Yahoo
Reckitt eyes new options to advance Air Wick unit sale, sources say
By Amy-Jo Crowley and Richa Naidu LONDON (Reuters) -Britain's Reckitt is considering new options to advance a sale of its Essential Home business, home to Air Wick fresheners and Cillit Bang cleaners, after bids came in below expectations, two people with knowledge of the process said. The company still plans to pursue a sale, the people said, who spoke on condition of anonymity because the talks are private. Private equity firm Advent remains in talks for the assets, one of the people and a third person said. Reckitt, which also makes Mucinex cold medication and Durex condoms, said in July it was looking to offload a portfolio of homecare brands by the end of 2025. The proposed sale comes at a challenging time for businesses with factories around the world as they navigate U.S. President Donald Trump's tariffs, which are roiling supply chains, boosting costs and dampening shopper sentiment. Reckitt could keep a stake in the business or structure a sale another way to bridge a gap in valuations, one of the people said, adding that some of the bids came in below its hopes of over 4 billion pounds ($5.4 billion). Reuters could not determine if other bidders remained in the process. Reckitt and Advent declined to comment. Bankers and CEOs have hit the brakes on mergers and acquisitions since Trump launched his trade war, with fewer deals getting signed than during the bleakest days of the COVID-19 pandemic and the 2008-2009 global financial crisis. Reckitt said in April that it was "continuing to progress" the sale of the Essential Home business but that market conditions might affect the time frame. Consumer staples companies are considered relatively resilient to economic downturns, but big brands like Reckitt, P&G and Unilever increasingly face competition from cheaper private label brands that gained popularity during the pandemic. Reckitt's Essential Home business has struggled for several quarters, with sales falling 7% in the first quarter of this year to 482 million pounds, about 13% of total revenue for the quarter. Reckitt has been undergoing a turnaround under CEO Kris Licht, who has sought to reassure shareholders concerned about the strength of the company's brands in North America and Europe, where consumer confidence has been dwindling. ($1 = 0.7397 pounds)
Yahoo
27-05-2025
- Business
- Yahoo
Exclusive-Unilever to guarantee European ice cream workers' employment terms for 3 years, memo shows
By Richa Naidu LONDON (Reuters) -Ben & Jerry's maker Unilever has agreed to guarantee its ice cream workers' employment terms in Europe and Britain for at least three years after the business' spin-off, according to a memo, tripling the usual period in such deals. Under European Union and British legislation, employees' contracts and collective agreements can be renegotiated one year after sales or spin-off deals. The decision will lock the new ice cream company into a three-year deal that will impact how it treats and pays employees in Europe, regardless of uncertainty or changes to the environment in which it operates. Unilever announced the spin off of its ice cream unit, which includes five of the world's top 10 category brands including Magnum and Wall's, in March 2024 and said it would cut 7,500 jobs from the group globally to save costs. About 3,200 layoffs were initially expected in Europe but Reuters reported in November that the British consumer company had nearly halved this figure by moving people to the ice cream unit. The new ice cream business will have its primary listing in Amsterdam. "Working conditions will be protected for at least three years and cannot be worsened," according to the memo reviewed by Reuters and sent on Tuesday from the European Works Council to Unilever employees after nearly a year of negotiations with the company. Unilever did not respond to a request for comment. The ice cream unit's roughly 6,000 workers will be able to maintain the same conditions on salaries, bonuses, share plans, pensions and holidays, according to a source familiar with the discussions with Mustafa Seçkin, the chairperson of the new company's European business. THE MAGNUM ICE CREAM COMPANY The source, who did not have permission to speak with the press, said further layoffs were unlikely at the business, which generated sales of 8.3 billion euros ($9.4 billion) in 2024 and is to be named The Magnum Ice Cream Company. On July 1, the business is expected to launch as an independent company under the Unilever umbrella, ahead of the demerger at the end of this year. Ben & Jerry's independent board members were not part of the negotiations with the European works council, nor were they consulted, the source said. Unilever has been embroiled for nearly a year in an acrimonious legal battle with the independent board of Ben & Jerry's, one of its biggest brands, over allegations that it is muzzling the Vermont-based company - including on political issues - hurting its ability to carry out its social mission. ($1 = 0.8809 euros) Sign in to access your portfolio
