Unilever freezes Ben & Jerry’s Israel directors’ salaries amid dispute over country boycott

04 Aug 2022 --- Board of director members from Ben & Jerry Israel have accused parent company Unilever of freezing their salaries in July.

The ice cream business and its parent company are entrenched in a dispute over the sale of Ben & Jerry to Israeli Avi Zinger, a Israeli company, as the company doesn’t want to profit from sales in the Middle Eastern country.

Ben & Jerry’s has publicly denounced parent company Unilever’s decision to continue distributing its ice cream product across Israeli settlements in the occupied West Bank, as it is “inconsistent” with its values.

Legal dispute
Ben & Jerry sued Unilever in US courts in an attempt to stop the sale of its business in Israel.

Both parties agreed to enter a two-week mediation process in mid-July, but the talks failed. This Monday, Ben & Jerry decided to proceed with a preliminary injunction to block the sale of its ice cream business to Avi Zinger.

Ben & Jerry says that the sale of its business goes against the spirit of its acquisition settlement by Unilever back in 2000.The board of directors of Ben & Jerry say that the sale of the business goes against the letter and the spirit of its acquisition settlement by Unilever back in 2000. 

Under the terms of Unilever’s acquisition agreement of Ben & Jerry’s, the latter and its independent Board were granted rights to make decisions about its social mission.

Ben & Jerry defends that its social mission is undermined and, therefore, its integrity, which affects its global business.

Activist company
Ben & Jerry’s corporate strategy involves active participation in current events, taking a stance on many diverse political issues other than the Israel boycott.

“We have a special opportunity and responsibility to be heard because our collective voice is powerful. Events of the last year have shown that US citizens’ ’ expectations of corporate citizenship are changing rapidly. US consumers want companies to have a position on societal issues that includes tackling racism and advancing social justice,” stated Matthew McCarthy, CEO of the company, last year.

The ice cream business is also involved in trying to decriminalize cannabis consumption in the US, “the fact that Ben & Jerry’s and the American Civil Liberties Union are all-in on cannabis justice may not be shocking,” says the company.

The company also expresses its opinion in many other topics: abortion rights in the US, campaigning not to travel by plane this Summer to reduce carbon emissions and asylum seekers’ awareness, among others.

By Marc Cervera