Unilever told 'hands off our pensions!' as workers vote overwhelmingly for strike action

28 November 2011

Members of Unite, the country's biggest union, working at Unilever, have today (Monday 28 November) voted overwhelmingly in favour of industrial action in protest over the company's plans to scrap its final salary pension scheme.

In what will be the first ever national strike at Unilever workers have voted 'yes' to strike action by nearly 85 per cent, with about 92 per cent voting in favour of action short of a strike. This will mean walkouts are likely across the company's 12 sites during December.

Unilever, the food and household goods giant, whose brands include Marmite, Hellman's Mayonnaise, Pot Noodle, Dove, PG Tips, Comfort and Surf, is ploughing ahead with its plans to ditch the company's final salary pension scheme which will see the retirement income of thousands of staff slashed by up to 40 per cent.

The decision to strike has not been taken lightly but workers say that the threat of huge pension losses and the company's betrayal of its loyal workforce have forced employees into a corner.

Unilever cut the union out of consultations when workers' representatives would not accept the closure of the scheme. Unite is urging the management to get back around the negotiating table to hammer out an acceptable deal.

Jennie Formby, Unite national officer, said: “Our members have spoken and, while the decision to strike was not an easy one, the message is clear: they will not roll over and accept this attack on their pension scheme. Unilever must now do the decent thing for its loyal workforce and get back around the negotiating table.

“Unilever is betraying the very staff who have worked tirelessly over decades to make Unilever the hugely successful and profitable global giant it is today. Our members now face losing thousands of pounds in retirement, whilst at the same time the directors earn millions in bonuses and share options.

"Only this month, Paul Polman (CEO) received shares worth £1,069,986, and Unilever management has told us that the pension changes are not driven by financial imperatives. The truth is they want to maximise returns to shareholders and fat cat executives, and make our members pay the price by slashing their pensions.

"We put forward alternatives to reduce the risk to the final salary scheme and cap benefits, but Unilever refused to listen.

"This attack on our members' pensions flies in the face of all that Lord Leverhulme (English industrialist and Unilever's founder) campaigned for when he fought for workers' pensions in the early 1900s and has deeply angered our members across all areas of the company.”

Unite balloted over 1,600 members across nine factories, R&D and IT and all grades of workers participated in the ballot, including white collar and management. Members of Usdaw and GMB have also voted for strike action.

Unilever plans to transfer current final salary scheme members to an inferior Care Average Revalued Earning (CARE) with effect from 1 January 2012.

The plans will lead to pension losses of around 20 per cent for the majority, but with some individuals losing as much as 40 per cent of their retirement income.

ENDS

Notes to editors:

Unite represents workers at Unilever sites including: Purfleet (Essex); Port Sunlight (Wirral); Warrington (Cheshire); Leeds; Crumlin (Wales); Gloucester; Manchester; Burton-on-Trent (Staffordshire); Research & Development, Port Sunlight (Wirral); Research & Development, Colworth (Bedford); IT, St. David's Park, Chester.

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