Some 108 employees from Unilever’s manufacturing division are set to be retrenched at the end of July.

The exercise is expected to impact unionised staff and a few managers. It comes as a supply agreement between Unilever and a third party has come to an end.

“After Unilever sold its Spreads business in 2018, UCL as part of its restructuring exercise entered into a four-year supply agreement with a Third Party. This arrangement was the result of exhaustive analyses of the current operations and various restructuring strategies,” the company explained in a statement.

“Now that the supply agreement has expired, the company, unfortunately, has no option but to let go the employees of the manufacturing division,” it said.

Unilever said it engaged in extensive consultations with the Oilfields Workers’ Trade Union (OWTU), the recognized majority union for workers employed by the company, ahead of the move.

“These in-depth discussions were meant to reach a mutually agreeable outcome, if at all possible, in the interest of all parties, especially the affected workers. The company wishes to express its deep appreciation for the service and contribution made by its employees over the past years,” it ended.