07:01 AM EDT, 06/13/2025 (MT Newswires) -- Unilever ( UL ) workers in Ivory Coast are accusing the company of breaching their collective bargaining agreement by refusing to guarantee severance pay if layoffs occur after the sale of its local unit, Reuters reported Friday, citing internal documents and sources.

The company is selling its Ivory Coast business, which employs 160 people, to a local consortium led by Societe de Distribution de Toutes Marchandises Cote d'Ivoire, but the deal excludes Unilever's ( UL ) international brands, which reportedly accounted for over 60% of the unit's 2023 revenue.

Workers began protesting on April 25, citing concerns that the sale, expected to close by June 20, could lead to layoffs due to the unit's declining turnover and the loss of key brands, Reuters reported.

The transaction involves a share sale, meaning employment contracts remain intact and severance pay is not applicable, but workers argue the collective bargaining agreement guarantees severance and medical coverage in case of layoffs, Reuters quoted Uniliver as saying.

A lawyer representing the workers said the sale risks violating the Ivorian Labor Code, which requires employee consent for significant changes to contracts, and no assurances have been provided about job security, the news outlet reported.

Unilever ( UL ) did not immediately respond to MT Newswires' request for comment.

Shares of the company were down by more than 1% in recent Friday premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)ee