Finance
Unilever Works Council Warns of Union Action if Workers Are Not Protected in McCormick Deal
Published by Global Banking & Finance Review®
Posted on March 31, 2026
2 min readLast updated: March 31, 2026
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Unilever’s European works council warns that its pending food-business tie‑up with McCormick — a deal potentially worth over $30–60 billion structured via a Reverse Morris Trust — risks job cuts and uncertainty, prompting possible union action.
Unilever Workers Threaten Union Action Over McCormick Merger Fears
Union Concerns and Potential Impact of the Unilever-McCormick Merger
By Richa Naidu
Uncertainty Over Job Security
LONDON, March 31 (Reuters) - Unilever's European works council is worried about job losses from the company's potential food merger with McCormick, warning that it was stoking uncertainty and could lead to union action.
Details of the Potential Merger
A deal to combine Unilever's food business with the U.S. spice maker would create a $60 billion food giant and could result in brands such as Hellmann's mayonnaise being spun off and put under the same roof as McCormick's Cholula hot sauce.
Employee Representation and Fears
"We fear that a possible transaction could be accompanied by further personnel measures," the Unilever European Works Council (UEWC) which represents nearly 20,000 employees in Europe and Britain, told Reuters.
"Uncertainty among the workforce is high."
Potential Union Actions
Pushback from workers and unions could add to the challenge for Unilever and CEO Fernando Fernández, who is driving a major turnaround at the British company, aiming to simplify the business, cut costs and sharpen its focus on health and beauty.
Possible Steps by the UEWC
The UEWC said it would turn to the trade unions it works with to discuss what action might be taken if Unilever does not "find good solutions for affected employees".
"It could lead from negotiations to maybe strikes in different countries where that is possible. It depends on the legislation around Europe," the UEWC said.
Company Response and Workforce Overview
Unilever did not respond to a request for comment.
The company has 4,800 food business employees in Europe and Britain, roughly a third of its total workforce in the region.
(Reporting by Richa NaiduEditing by Adam Jourdan and David Goodman)
Key Takeaways
- •The UEWC, representing ~20,000 European and UK employees, fears staff reductions and heightened workforce anxiety amid Unilever‑McCormick merger talks
- •Under the proposed Reverse Morris Trust, Unilever shareholders would retain a majority (≈ 50–65 %) of the combined entity, with food assets such as Hellmann’s and Knorr being spun off
- •Union pressure and potential strikes could complicate the deal as Unilever pushes forward with CEO Fernando Fernández’s strategy to slim down food operations amid broader restructuring
Frequently Asked Questions about Unilever works council warns of union action if workers are not protected in McCormick deal
1Why is the Unilever works council concerned about the McCormick deal?
The works council fears job losses and increased uncertainty due to the proposed merger, possibly leading to union action.
2What could result from the merger between Unilever's food business and McCormick?
The merger could create a $60 billion food giant, with brands like Hellmann's mayonnaise and Cholula hot sauce under one roof.
3How many Unilever food business employees could be affected in Europe and Britain?
Approximately 4,800 employees, about a third of Unilever’s regional workforce, could be impacted.
4What types of union action has the Unilever works council mentioned?
The works council suggested possible negotiations or even strikes in countries where legislation allows.
5Has Unilever responded to concerns from the works council about the merger?
No, Unilever has not responded to the works council’s request for comment regarding the merger.
