UPM strike extended again as union says no

The strike at papermaking giant UPM Kymmene which has crippled output since the start of the year has been extended yet again, with the union rejecting four settlement offers from the conciliator.

The exceptionally long strike at UPM Pulp, UPM Communication Papers, UPM Specialty Papers, UPM Raflatac and UPM Biofuels units in Finland has been going on since 1 January, and is adding to paper supply concerns around the world.

Some 2000 staff are out on strike, with 200 working on critical tasks. The electricians union and the transport workers union have also instructed their members not to do any work for UPM.

The strike has now been extended until at least 14 May. The union claims UPM is losing €20m per week as a result of the non-production. The company had wanted to negotiate separately for each of its four businesses, but the union has turned that down.

Jyrki Hollmén, vice president, Labour Markets at UPM, said ““It is very disappointing that after intensive negotiations, no business was able to reach a conclusion. Petri Vanhala, chairman of the Paperworkers’ Union, confirmed in the mediation of all businesses that each business can be agreed separately. The mediation found settlement proposals for four businesses that took the needs and wishes of both parties into account. We were confident that both parties undertook to accept these settlement proposals and industrial peace would resume. Now that the union has turned down the once drafted proposals, our businesses will make a fresh start."

Industry insiders are now speculating that UPM Kymmene may just shut down its four Communication Papers mills in Finland, which produce 2.3 million tonnes of paper for print each year between them. UPM has another nine Communication Mills outside Finland.