Employment issues related to a factory closure in India
Lead NCPUnited Kingdom
Supporting NCP(s)Netherlands
DescriptionSpecific instance notified by the international union IUF regarding the activities of Unilever, a UK-based multinational enterprise operating in India.
Theme(s)Concepts and principles, Employment and industrial relations
Date3 Oct 2006
Host country(ies)India
SourceTrade Union
Industry sectorManufacturing

Read the final statement issued by the UK NCP concluding the specific instance - 28 August 2008

In October 2006 the UK and Dutch NCPs received a request for review from International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Association (IUF) alleging that the sale and subsequent closure of the Hindustan Lever Limited’s Sewri factory in Mumbai (India) breached the concepts and principles, and employment and industrial relations provisions of the Guidelines. More specifically the concerns raised by IUF related to an alleged breach of Indian Law, and the company's failure to provide reasonable notice about transfer of ownership.

On 12 January 2007, the UK NCP agreed to take the lead on this specific instance in order to reach a negotiated agreement on the situation of the 782 employees, but declined to consider whether Indian law had been broken as such an investigation is beyond the scope of the Guidelines. However, both parties informed the UK NCP on 13 October 2009 that they had reached a mediated settlement in India outside of the NCP process, addressing all the issues raised in IUF’s original complaint.

In light of the mutual agreement the UK NCP concluded the specific instance process.