Stock Markets March 31, 2026

Unilever workers council warns of possible union action over McCormick merger talks

European employee representatives express concern about job cuts and heightened uncertainty if Unilever combines its food arm with McCormick

By Derek Hwang MKC
Unilever workers council warns of possible union action over McCormick merger talks
MKC

Unilever’s European works council has raised alarms about potential staff reductions and widespread uncertainty tied to a proposed combination of Unilever’s food business with U.S. spice maker McCormick. The council said it may coordinate with trade unions and consider industrial action if adequate protections for affected employees are not agreed.

Key Points

  • Unilever’s European Works Council warned a potential merger with McCormick could prompt personnel reductions and has raised workforce uncertainty.
  • The proposed combination would create a roughly $60 billion food company and could see brands like Hellmann’s paired with McCormick’s Cholula.
  • The UEWC said it may coordinate with trade unions and, depending on national legislation, pursue negotiations up to strikes to protect affected employees - impacting the consumer goods and labor sectors.

Unilever’s European works council has signalled growing alarm over the potential consequences of a proposed deal to merge the company’s food operations with McCormick, saying the transaction risks triggering job reductions and is generating significant unease among staff.

The transaction under discussion would create a combined food group valued at about $60 billion and could see brands such as Hellmann’s mayonnaise transferred and placed alongside McCormick’s Cholula hot sauce, the works council noted. The Unilever European Works Council (UEWC), which represents nearly 20,000 employees across Europe and Britain, told Reuters it is concerned a deal of this nature could be "accompanied by further personnel measures."

"Uncertainty among the workforce is high," the UEWC said, highlighting the strain such talks have placed on employees. The council indicated it would engage with the trade unions it collaborates with to consider what responses might be necessary if Unilever does not "find good solutions for affected employees."

That engagement could extend to formal negotiations and, where permitted by national law, to strike action in countries across Europe, the UEWC added. "It could lead from negotiations to maybe strikes in different countries where that is possible. It depends on the legislation around Europe," the council said.

The union pushback presents an additional complication for Unilever and its chief executive, Fernando Fernández, who is overseeing a large-scale turnaround at the British consumer goods group. Fernández’s strategy includes simplifying the company, reducing costs and sharpening its focus on health and beauty, a repositioning that the UEWC said could be affected by the proposed food business combination.

Unilever did not provide a response to a request for comment. The company employs some 4,800 people in its food business across Europe and Britain, a figure that represents roughly one third of its total regional workforce.

The UEWC’s statement underscores the degree of employee concern tied to strategic moves that could reshape brand ownership and operational footprints. The council has made clear it will seek to work with trade unions to press for protections, while leaving open the possibility of industrial measures where national rules allow.


Contextual note: The UEWC represents nearly 20,000 employees in Europe and Britain; Unilever’s European and British food business staff count is about 4,800, roughly one third of its workforce in the region.

Risks

  • Potential job losses and restructuring in Unilever’s food division - risk to employees and labor relations within the consumer goods sector.
  • Heightened workforce uncertainty could lead to industrial action in European countries where strikes are permitted - risk to operations and supply chains in affected regions.
  • Union and works council pushback could complicate Unilever’s strategic turnaround efforts and cost-cutting plans under CEO Fernando Fernández - risk to corporate execution in the consumer goods market.

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