Finnish port strikes could affect paper and pulp

The strikes could cause problems for pulp and paper mills
The strikes could cause problems for pulp and paper mills

The ongoing strike action of thousands of stevedores at Finnish ports could cause supply chain disruptions that impact the industry.

The Finnish Transport Workers’ Union (AKT) started the strike – which has impacted all Finnish ports and terminals – on 15 February.

The union’s main goal is to reach an agreement that improves wage levels and corrects for losses of purchasing power. Various issues regarding working conditions must also be resolved.

All vessel operations in Finnish ports, gate moves, and handling of containers within terminals are suspended and, now two weeks since the strike began, the negotiating parties have not yet reached an agreement despite negotiations, which were set to resume today (1 March).

BPIF Labels said in an update on the situation posted on Monday (27 February) that AKT chairperson Ismo Kokko regarded the continued action as an indication that the circa-45,000 member union was prepared for a long fight over the terms and conditions of employment.

Kokko told Finnish public service broadcaster YLE last week that the union would pursue an agreement based on its own needs rather than consenting to the terms agreed in key export industries.

The strikes are also affecting other transport sectors in Finland. In an update posted by AKT on its website today (1 March), it said a settlement proposal of bus staff and maintenance workshops was rejected. The strikes for these workers therefore began today and, if no settlement is reached, will end on 10 March.

Warnings have also been given about new periods of strikes for these sectors for later in the month.

A settlement proposal was accepted yesterday, however, for three road transport sectors; the truck sector, the tank and oil product sector, and the terminal operations sector.

BPIF Labels warned of the potential industry impact of some of the strikes, which it said “had caused delays and disruptions to the supply chain which could impact on materials within the printing industry”.

“The stevedoring strike, however, may continue to have an impact on shipments arriving from abroad,” it stated.

“With 90% of Finnish foreign goods trade processed at ports, the stevedoring strike has also effectively halted foreign trade.”

In a separate update posted last week, BPIF Labels said that – at that point – while no pulp or paper mills had reported any disruption to operations because of the strikes so far, several had suggested that should the industrial action continue for a longer period, the situation could change.

UPM, who saw strikes at its Finnish mills last for over 100 days early last year, had informed customers that the transport strikes could impact its ability to deliver pulp produced at its Finnish mills.

But it said that in order to mitigate any possible impact, it had increased storage capacity outside ports and raised inventory levels outside Finland.

Helsinki Times, meanwhile, reported last week that Juha Laine, head of communications at Metsä Group, had said: “Metsä Group’s factories are in operation for the time being, but if the strike drags on their operations will be in jeopardy.”