Salaried employees will begin strike at UPM in Finland

Archive 5.4.2011 10:50 EEST
Tomorrow, on 6 April at 6:00 Finnish time, the salaried employees have
announced to begin a two-week strike which would affect the majority of UPM's
operations in Finland. The strike does not include UPM's mechanical forest
industry, that is, Plywood, Timber and UPM ProFi businesses, UPM's forestry
specialists, senior salaried employees, nor salaried employees of other
forestry companies in Finland. At UPM, there are around 1,300 salaried
employees working, among others, within the supply chain, and finance and HR in

”At this stage it is impossible to estimate the exact impacts of the strike but
even a conservative estimate of the damage would be given in millions of euros.
When the strike begins, we most probably must start to running down paper mills
already within a couple of days,” says Jyrki Ovaska, President of UPM's Paper
Business Group.

"The continuous disturbances on the labour market damage Finland's reputation
and the repeated strikes will shift orders permanently to other locations from
the Finnish production units. Industrial actions targeted towards only one
company represent negotiation tactics which have unreasonable consequences to
customers, the company and also to all of the company's employees.

"In recent years, UPM has centralised its global administration services in a
service centre in Tampere, Finland. If there is repeated uncertainty in our
operations in Finland, we must evaluate whether our operations in Finland
are in right proportions or whether we have to start to steer our operations to
countries, where the risk of strike is lower,” says Ovaska.

Conciliation lead by the conciliator general was ended unsettled yesterday. For
the time being the conciliator general has not invited the parties to further
conciliation. The Finnish Forest Industries Federation (FFIF) and trade union
Pro have negotiated on salaries and labour contract during the beginning of the
year. In the negotiations led by the conciliator general, Pro has required a
3.5 percent rise in salary and transfer into an old-fashioned compensation
system, which does not match the needs of today's labour market. The FFIF
considers the salary request oversized in comparison to the other wage
settlements completed this spring.

For further information, please contact:
Mr Jyrki Ovaska, President, UPM, Paper Business Group, tel. +358 204 15 0564

UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284