Unilever works council warns of union action if workers are not protected in McCormick deal

By Richa Naidu

LONDON, March 31 (Reuters) - Unilever's ULVR.L European works council is worried about job losses from the company's potential food merger with McCormick MKC.N, warning that it was stoking uncertainty and could lead to union action.

A deal to combine Unilever's food business with the U.S. spice maker would create a $60 billion food giant and could result in brands such as Hellmann's mayonnaise being spun off and put under the same roof as McCormick's Cholula hot sauce.

"We fear that a possible transaction could be accompanied by further personnel measures," the Unilever European Works Council (UEWC) which represents nearly 20,000 employees in Europe and Britain, told Reuters.

"Uncertainty among the workforce is high."

Pushback from workers and unions could add to the challenge for Unilever and CEO Fernando Fernández, who is driving a major turnaround at the British company, aiming to simplify the business, cut costs and sharpen its focus on health and beauty.

The UEWC said it would turn to the trade unions it works with to discuss what action might be taken if Unilever does not "find good solutions for affected employees".

"It could lead from negotiations to maybe strikes in different countries where that is possible. It depends on the legislation around Europe," the UEWC said.

Unilever did not respond to a request for comment.

The company has 4,800 food business employees in Europe and Britain, roughly a third of its total workforce in the region.