Ethical Performance
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Unilever accepts deal with unions at Indian factory

December 2010

Unilever has agreed to introduce a process allowing trade union representation and other rights at a factory in India, after an international union complained it was breaching the Organization for Economic Co-operation and Development Guidelines for Multinational Enterprises.

The UK national contact point for the Guidelines received the complaint from the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF), which had accused Unilever of forcing employees to renounce membership of its Hindustan Lever Workers’ Union and join instead the Hindustan Unilever Democratic Workers’ Union.

The two parties have now reached an agreement that will permit secret ballots for union business and a pledge to cease the automatic deduction of membership fees for organizations from wages, which prevents workers from joining their preferred union.

The terms of the deal are to be overseen by a mutually agreed independent third party acceptable to all parties.

Unilever | Asia | Labour Rights

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