Germany: Union warns of Unilever job losses

03 Aug 2017 --- Around 1,000 German Unilever factory jobs are at risk as the Dutch-British transnational consumer goods giant mulls over a staff cull, according to a union spokesman for the German food industry union NGG. NGG claims that Unilever is threatening jobs as part of a Group savings strategy, accusing the company of wanting to “polish up” its balance sheet in a bid to make it more appealing for international investors and is cutting vacancies for further savings. 

NGG chairman Michaela Rosenberger claims that positions could come under the ax across eight German locations, involving approximately 1,000 jobs. 

“The plants in Auerbach, Stavenhagen and Heilbronn are under review,” says a statement, warning that employees would also be affected at Buxtehude (Lower Saxony), Heppenheim (Hesse), Mannheim (Baden-Württemberg), Kleve (North Rhine-Westphalia) and Pratau (Saxony-Anhalt).

Meetings between all parties are believed to be taking place.

In February 2017, the financial world and food industry were stunned when it emerged Kraft Heinz had made a US$143 billion offer for Unilever, claiming that combining the two companies would create a leading consumer goods company with: “a mission for long-term growth and sustainable living.” 

The takeover attempt was rejected with Unilever saying that it saw no merit in it as it fundamentally undervalued the company. 

Subsequently, in April, Unilever announced it was to ditch its spreads business including well-known margarine brands like Flora and Stork, following a strategic review. Then in June, it planned an auction of the business in the fall, as reported by FoodIngredientsFirst. 

Unilever CEO Paul Polman said at the time of the initial announcement in April that the review has also highlighted opportunities for “accelerated development” of Unilever’s portfolio and that the future of the spreads business: “now lies outside the Group.”

Meanwhile, earlier this week Unilever announced it has completed the acquisition of Hourglass, the luxury color cosmetics brand. Terms of the deal were not disclosed.

By Gaynor Selby