While a merger means HUL taking over GSK Consumer’s assets, including its employees, any mention of retention of employees beyond the merger is missing in the deal.
The employees of GSK Consumer Healthcare (GSK Consumer), which is set to be merged with Hindustan Unilever (HUL), are looking for clarity on their future amid growing cheer among stakeholders of both the companies.
The Gurugram-headquartered arm of GSK has around 4,000 employees.
HUL chairman and managing director Sanjiv Mehta told reporters in Mumbai on Monday: “We will absorb all of GSK Consumer's employees as part of the merger process.”
But the relief among GSK employees was short-lived. At the same media conference, chief financial officer Srinivas Phatak said synergies and tackling of overlapping areas, functions and employees would be looked into later.
“This is a growing business, so we would need talented people. But that would be looked into later after the merger process, which would take a year, would be completed,” he said.
According to David Redfern, GSK’s chief strategy officer, HUL said there would be some synergies.
“They are taking over all the assets, including people. While we have expertise in manufacturing and distribution, I am sure there will be some overlapping in some areas. But that is for HUL to work out in the next one year.”
Employees say they are unclear how many of them would be retained in HUL once the merger process gets over. The root of the problem lies in the deal.
While a merger means HUL taking over GSK Consumer’s assets, including its employees, any mention of retention of employees beyond the merger is missing.
This keeps the window open for HUL to lay off some of the workforce that would turn redundant.
Photograph: Loriene Perera/Reuters
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