Unilever closes two production lines in Chile involving 200 workers

The multinational Unilever took a surprising turn this Thursday, which reported that as of October 3, it will stop producing cleaning products sold in the country at its own plants in Chile and that it will no longer pack tea.

“The decision responds to the transformations throughout the chain that the industry has faced and the transformation of Unilever’s production matrix globally, which has accelerated in Chile the need to reconfigure the operation that was already facing serious problems of competitiveness ”, they said from the company.

Through a letter, the company made the decision known to its suppliers, with whom it opened a consultation line to clarify doubts.

However, the decision has an important consequence for its workers, as it includes the departure of some 200 workers, according to the president of Unilever’s union 1, Claudio Urrutia.

In this regard, the company indicated that “regarding the exit plan for workers in these categories, the company will work together with the unions and with those who are not represented by them in a responsible exit plan.”

The union leader said that the announcement made by the company took them by surprise, since they were only informed this Thursday.

“We were notified today at 12 o’clock without prior notice and without any signal prior to this. For us and for the workers it is a real bad surprise and terrible news. There is a context that is difficult to explain and understand, because this company has products in all the stores in Chile and it is not selling or outsourcing the factory. What the company is doing is bringing the same products that it wants us to continue buying from other countries without providing work, ”said Urrutia.

Along the same lines, he indicated that in March the union had won a lawsuit against the company. “We have come with a level of conflict since 2019.”

The cleaning products that Unilever has in Chile represent about 50% of the total market, so the union asks for more information on the closure of this line. That is why this day they will meet with their lawyers and see what measures they will take.

Regarding this, from Unilever they said that in the home category in Chile there have been important changes in the market structure that affected volumes, making production unsustainable.

“The proliferation of informal detergents in free fairs, mostly liquid, today represents almost half of the market, which has forced a reduction in the production of powders, making the cleaning products factory less and less efficient”, they assured.

Meanwhile, the decision to close the tea packaging line, the company indicated that it responds to the need for a competitive supply for Lipton, “to keep the brand present in the medium and long term in the country”,

When the exit of the two categories is finalized, Unilever will only produce mayonnaise and dressings in Chile at the Panamericana factory.