PAPER: UPM strike adding to pressures

The longest paper workers strike in Finnish history, which has crippled output at the €10bn a year UPM Kymmene mills and pulp plants, shows no sign of being resolved, adding to paper supply issues.

Unions and management have been meeting daily, however papermakers union Paperiliitto said, “The parties have met daily this week, and agreed to hold talks next week as well. However, negotiations are not yet well advanced.”

According to the union, UPM has conceded ground on some of its demands, but it says “there are still too many left.”

UPM Kymmene manufacturers commercial, publication and labelstock grades from its mills, and label bases for many other brands, all for worldwide distribution, including to this part of the world.

Other Finnish unions have reconfirmed their support for the striking paper workers, with the electricians union refusing to send workers to maintain the mills, and the transport workers union refusing to handle any UPM stock.

UPM workers at its Finnish mills and pulp plants have been out since new year’s day.

Tony Bertrand, marketing manager at Ball & Doggett, which supplies UPM grades in ANZ said the strike was “compounding” the current supply issues.

The strike adds to a tightening supply, with rival Finnish papermaking giant Stora Enso closing two massive mills last year, taking out a million tonnes of commercial paper a year, while other paper manufacturers are converting their lines to produce more profitable packaging grades, and toilet papers.

In addition, the ongoing shipping crisis is causing paper distributors major headaches, and now the war in Ukraine and sanctions on Russia are having an impact.