Unilever, the consumer goods giant behind brands like Ben & Jerry's, has committed to guaranteeing the employment terms for its ice cream division workers in Europe and Britain for a minimum of three years following the business's upcoming spin-off. This agreement, detailed in an internal memo, significantly extends the usual one-year protection period mandated by European Union and British legislation for such transitions.

The decision means the newly independent ice cream company, set to be named The Magnum Ice Cream Company, will be bound by existing employee contracts and collective agreements for three years. This offers a substantial degree of stability to its approximately 6,000 workers in Europe, ensuring their salaries, bonuses, share plans, pensions, and holiday entitlements remain consistent, regardless of market fluctuations or internal changes.

Unilever announced its plan to spin off its ice cream unit, which boasts five of the world's top ten ice cream brands including Magnum and Wall's, in March 2024. The move was part of a broader restructuring effort to cut costs, with an initial global target of 7,500 job reductions. While approximately 3,200 layoffs were initially anticipated in Europe, Reuters reported in November that this figure had been nearly halved by transitioning employees to the new ice cream unit.

The new ice cream business will establish its primary listing in Amsterdam. According to the memo, which Reuters reviewed, "Working conditions will be protected for at least three years and cannot be worsened." This assurance comes after nearly a year of negotiations between Unilever and its European Works Council. Unilever has not yet responded to requests for comment on the agreement.

A source familiar with the discussions, who spoke on condition of anonymity, confirmed that the workers would maintain their current conditions. The source also indicated that further layoffs within The Magnum Ice Cream Company, which generated sales of 8.3 billion euros ($9.4 billion) in 2024, are unlikely.

The spin-off process is slated for a phased approach, with the business expected to launch as an independent entity under the Unilever umbrella on July 1, ahead of a full demerger by the end of this year.

Notably, the independent board members of Ben & Jerry's, one of Unilever's most prominent ice cream brands, were reportedly not involved in or consulted on the negotiations with the European Works Council regarding these employment guarantees. This distinction is significant given Unilever's ongoing and contentious legal battle with Ben & Jerry's independent board over allegations of corporate overreach and interference with the brand's social mission.