Unilever has agreed to protect the employment terms of workers in its European and British food business for two years following the planned completion of its merger with McCormick in mid-2027, extending safeguards beyond the level typically provided under UK and European legislation.

Reuters reported that the previously undisclosed commitment was agreed with employee representatives and will remain in place until at least mid-2029, regardless of changes in business conditions.

According to a memo seen by the news wire, the European Works Council told employees it had secured "commitments regarding the long-term protection of existing terms and conditions for affected employees", with the guarantee lasting twice as long as is typical after corporate sales or spin-offs.

A Unilever spokesperson said: "We continue to engage constructively with our European and national works councils. We have made good progress over the past few weeks and have agreed commitments in Europe regarding the protection of employees' terms and conditions and consultation timelines." The company employs around 4,800 people in its food business across Europe and Britain, representing roughly one-third of its regional workforce.

The agreement follows Unilever's decision in March to merge its food division with US spices maker McCormick in a transaction valued at up to $65 billion that is expected to complete in mid-2027, subject to regulatory and shareholder approval.

The combined business will bring together brands including Knorr, Hellmann's and McCormick's spice portfolio, with Unilever shareholders retaining about 65 per cent of the enlarged company alongside a $15.7 billion cash payment.

The European Works Council, which represents nearly 20,000 employees across Europe and Britain, had raised concerns that the merger could result in job losses and warned prolonged uncertainty could lead to industrial action. Trade union federations and employee representatives have been negotiating with Unilever since the transaction was announced.

Sarah Meyer, assistant general secretary of the International Union of Foodworkers, said: "We would hope that the two-year guarantee is provided globally as to not send a message that workers outside of Europe are worth less than their European counterparts." She added that the organisation hoped "the same mistake is not repeated as with the ice cream separation where workers outside of Europe were not given the same guarantee".

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