UN Unilever NV

Workers at consumer goods company Unilever PLC (UL) in the U.K. are to demonstrate in London Tuesday ahead of a two-week program of rolling strikes in the latest action to protest against plans to scrap the company's final-salary pension scheme, U.K. trade union Unite has said.

Leaders of Unite, as well as the Usdaw and GMB unions, have called strikes at sites across England for up to 12 days from Jan. 17 and said the walkout will hit production of some of Unilever's key personal care and food brands including Dove, Marmite and PG Tips.

Unilever, which said Monday it has yet to receive official notification of the new strike action, noted that it is far from reaching any settlement. "It is currently not clear how the dispute with the trade unions will be resolved," it said.

It was immediately unavailable for comment on the logistical and financial implications of the new strikes.

In early December, more than 2,500 employees walked out and created picket lines for a day at various sites around the country--the first strike in the company's history. Unilever employs about 7,000 people in the U.K.

The unions say Unilever's plans will lead to pension losses of about 20% for most of its staff, but some individuals will lose up to 40% of their retirement income.

Unilever, the Anglo-Dutch maker of Ben & Jerry's ice cream, Knorr soup and Bertolli olive oil spreads as well as a variety household cleaning products, said the changes are necessary and final-salary pensions are no longer viable for the company.

In April, it said it was closing the final-salary pension plan to existing employees from July 2012. The revised scheme is based on career-average salaries and contributions, similar to those offered to new employees since 2008.

"This was a tough but necessary choice which reflects the realities of rising life expectancy and increased market volatility. We believe the provision of final salary pensions is a broken model which is no longer appropriate for Unilever," the company said in a statement.

Following consultation with employees last year, it has made three improvements and several enhancements to its original proposal, the company has said.

At 0951 GMT, Unilever shares were trading up 5 pence, or 0.2%, at 2128 pence, in a flat London market.

-By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; simon.zekaria@dowjones.com

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