9,000 paper mill workers started a three-week strike last week after pay talks broke down, with another 6,000 staff at sawmills, plywood mills and other forestry plants also participating in industrial action.
The mediation of the labour dispute between paper union Paperiliitto and the Finnish Forest Industries Federation took place last Tuesday (28 January) and resumed on Friday, but no progress has been made so far.
Companies affected by the shutdowns include UPM-Kymmene, Stora Enso and Metsä Board and the impact has already been felt in the UK market.
One industry source told Printweek: “We are experiencing delays on paper from all Finnish manufacturers. However, where possible they are offering alternatives from their production units outside of Finland.
“Inevitably, manufacturers elsewhere are experiencing strong order inflow and, as a result, extended lead times.”
Premier Paper group marketing director David Jones said the strikes were concerning but that the business had “taken action in order to mitigate the possible effects”.
“The majority of products sold by Premier are from stock and we hold extensive stocks of all our ranges throughout our network of 18 branches. This gives us some security against possible supply issues and ensures that we are able to continue to service our customers. In addition, we also hold 60 days worth of stock at wharf from our Finnish suppliers, so again this provides a buffer in order to help us provide continuity of supply.
“Since learning of the planned strikes, we have been liaising with our major customers, who take direct mill deliveries, in order to forward-order products or, in some cases, to find alternatives.”
In its full-year 2019 results, released last Thursday, Stora Enso warned that the strikes could affect its Q1 profit.
In a call to investors, the company’s recently appointed president and chief executive Annica Bresky said that, if the strikes continue, the total impact on Stora Enso would be around €11m (£9.3m) per week.
“Of course, we hope that this will be resolved in the agreement, but we have taken that into account in our guidance range,” she added.
Meanwhile, BillerudKorsnäs was also expecting losses in volume and sales at its Pietarsaari mill, where production has also been halted.
In a call to investors last Wednesday regarding its own full-year 2019 results, acting chief executive Lennard Holm said: “Our main concern when it comes to Pietarsaari right now is to make sure that our customers get what they need so they don’t get into difficulties due to the strike, which means that we have been able to build a certain amount of inventory ahead of the strike and we’re also moving some of the Pietarsaari products to our Karlsborg mill [in Sweden].
“If the strike goes on, it will for sure have an impact on the market, depending naturally on how long the strike is.”
Paperiliitto announced the possibility of a fourth week of strikes in a message to its members on the current state of negotiations, posted on Monday.
“The pressure to make a deal is tough on both sides of the table. The Finnish Forest Industries Federation’s arguments that trade unions disregard the jobs of their members or the viability of Finnish factories, or that they undermine competitiveness for years to come, are also harsh.”
“It is of primary importance to the paper union to care for its members and their future as part of the vitality of the industry. However, the Alliance does not want to undermine the collective bargaining agreement at the expense of competitiveness, as the sector must continue to be able to attract new skilled workers to the sector in the coming years.”
“Collective bargaining not only determines pay, but also the terms and conditions of employment that help workers to survive, recover and be productive, despite heavy working hours.”
The statement added that Paperiliitto’s TES [collective agreement] advisory board “regrets that no progress has been made”.
“The Finnish Forest Industries Federation has stalled its own policies and is reluctant to seek mutually satisfactory solutions. The TES advisory committee therefore left a strike on Sunday on the fourth strike week to speed up the negotiations. The ongoing strike will continue until 24 February. The strike includes member companies of the Finnish Forest Industries Federation and other companies that follow a collective agreement in the paper industry.”
“The negotiating parties have met today in the office of the national mediator. The TES advisory board of the paper federation believes that this time a new common approach has been found, which will continue to be developed between the offices.”
The mediation will continue under the leadership of the national mediator tomorrow morning.
