Unilever chill for workers in €2bn selloff

The UK’s Transport & General workers union, reports Peter O’Neill, reacted by calling the sale of Birds Eye a ‘shock’ for 650 ‘loyal’ staff in Lowestoft in the UK who would also worry about the future of their pensions, as well as who buys the factory. Across Europe more some 3,500 workers will be affected.

Unilever announced on 9 February the disposal of most of its frozen food (apart from ice cream) portfolio, including the Iglo and Birds Eye brands, in 11 countries: Austria, Belgium, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal and Spain. A Unilever statement added there are also five sourcing units up for sale in Cisterna in Italy, Reken & Bremerhaven in Germany, Lowestoft & Hull in the UK.

Unilever has put a value of €2 billion on the sale. It said it will retain its Bertolli frozen side dishes business in the USA and its very profitable Italian Frozen Food business.

Analysts say the move only serves to highlight the problem for Europe’s fishermen in supplying raw material to their home market. Key suppliers to processors in Europe, including the North American pollack sector, have been pushing raw prices up and more catch is being processed in developing countries in the lower-cost Far East. The switch of value added production such countries, which has been growing significantly, now seems unstoppable. Some suggest European fish processing workers must face the prospect that their employment will go the same way as garment and textile production.

A Unilever spokesman said an “exhaustive review” indicated the “best way for us to create value is by selling the majority of the European Frozen Food businesses”. He said that “growing” the existing businesses would not “deliver satisfactory value for Unilever” adding that it expected “future consolidation in the frozen food sector”.

This is seen by trade unions as business-speak for closures.