09:03 AM EDT, 06/13/2025 (MT Newswires) -- (Updates with company response in the second paragraph, minor edits)

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.

A spokesperson for Unilever ( UL ) has confirmed to MT Newswires that the company has agreed to sell its shares in Ivory Coast, that "the proposed transaction is by way of a sale of shares, which does not result in the termination of employees' contracts" and that "severance pay is not relevant as employment continues."

Shares in Unilever's ( UL ) Ivory Coast unit, which employs 160 people, are being sold to a local consortium led by Societe de Distribution de Toutes Marchandises Cote d'Ivoire, the Reuters report said. The deal excludes Unilever's ( UL ) international brands, which accounted for over 60% of the unit's 2023 revenue, the report added.

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, the report said.

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 report added.

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