Unilever Update: U.K. Staff Strikes Over Pensions

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Unilever‘s (NYSE:UL) employees in the U.K. started a strike on Friday to protest against the company’s plans to scrap the company’s final salary pension schemes. It likely won’t affect production of some of Unilever’s key personal care and food brands in the U.K. including Dove, Marmite and PG Tips. Unilever is the second largest consumer goods company in the world after Procter & Gamble (NYSE:PG).

Around 2,500 of Unilever’s 7,000 strong-staff in the U.K. mounted picket lines last Friday after employee unions claimed the company’s new pension scheme that is based on career average salaries and contributions, instead of final salary pensions to cause pension losses of around 20% for the majority of its staff. The strike affected Unilever’s key personal care and food brands including Dove, Marmite and PG Tips and is the first in Unilever’s history.

We value Unilever with a $32 Trefis price estimate of its stock, in line with the current market price.