Finnish strikes to hit paper supplies

UK printers and publishers have been warned that strikes in Finland could cause a paper shortage.

Stora Enso was the latest producer to be hit by a two-day wildcat strike. It started on 8 May and affected all of its mills in Finland.
Around 8,000 members of the Finnish Paper Workers Union walked out, shutting down all of the firm's 15 Finnish mills.

Stora Enso's senior vice president for investor relations Keith Russell said that although talks were continuing between employers and the unions, both sides seemed more determined than ever.

About 30% of Stora Enso's total production is in Finland, and Russell warned that if hit by strike action, all stockists of grades from the country could be affected quickly by supply shortages.

Some of the main products are coated woodfree and mechanical grades, used to produce magazines.

If talks between employers' representatives the Finnish Forest Industries Federation (FFIF) and the Paper Workers Union fail, the FFIF has threatened workers with a two-week lockout from 18 May.

This could lead to production losses of 840,000 tonnes, costing Finnish manufacturers around 381m (e560m).

Stora Enso has estimated that any nationwide stoppage in Finland could cost it up to 2m per day.

The main sticking points in talks between the mills and the unions are the Christmas and mid-summer shutdowns and the outsourcing of non-core duties.

The aim, Russell said, was to ensure that Finland could compete with countries where grades of a similar quality are produced.

"I think the employers mean business and they are not looking likely to submit," he said.

Story by Andy Scott