The FMCG giant is in the process of spinning off its ice cream division, which includes brands such as Ben & Jerry’s and Magnum, with that process due to be completed by the end of this year.
According to Reuters, Unilever has the right under EU and British law to renegotiate the contracts of people employed in the ice cream business one year after the spin-off.
However, a memo sent by the European Works Council to Unilever employees confirmed that the working conditions of its approximately 6,000 ice cream staff in Europe and Britain “will be protected for at least three years”.
The ice cream spin-off business will be based out of Amsterdam and will have its primary listing on the Euronext Amsterdam, with secondary listings in New York and London.
The demerged business will be known as The Magnum Ice Cream Company, and according to Reuters will launch under the Unilever umbrella on 1 July before the spin-off is completed.
Upon request for comment, a Unilever spokesperson said: “We have decided to guarantee the total value of working conditions for employees of The Magnum Ice Cream Company in Europe and the UK & Ireland for at least three years.
“This will help to provide stability for employees during this transition and reflects our confidence in The Magnum Ice Cream Company’s prospects for growth as a standalone company.”
Independent board members from Ben & Jerry’s were left out of the negotiations and were not consulted, Reuters added.
Reports emerged earlier this year that the founders of Ben & Jerry’s, Ben Cohen and Jerry Greenfield, had held talks about buying the brand back from Unilever. The possibility of a sale was denied by Unilever.
There have been several disagreements between the two parties over the years, with Ben & Jerry’s filing a lawsuit against its parent company in November 2024 accusing Unilever of silencing the ice cream maker’s attempts speak out against Israel’s attacks on the Gaza Strip as well as its calls for a permanent and immediate ceasefire.
Cohen was arrested earlier this month while protesting in the US Senate over the country’s provision of military aid to Israel. The firm has also accused Israel of committing genocide against the Palestinian people, a conclusion shared by human rights organisations including Amnesty International and Human Rights Watch and numerous scholars around the world.
According to official figures, at least 54,000 Palestinians have been killed in Gaza since 7 October 2023, while a Lancet study from earlier this year has estimated that the actual death toll is about 40% higher than the recorded number. United Nations secretary general Antonio Guterres has also said that the “entire population of Gaza is facing the risk of famine”.
