Strikes in pulp and paper sector over proposed job cuts

In May 2006, the Finnish Paper Workers’ Union held a two-day strike in response to proposed job cuts in the pulp and paper sector. The two-day protest by factory workers was followed by a further strike by office workers in the sector, organised by the Union of Salaried Employees. Both unions have stated that they are taking a tougher line on redundancies than in the past. The decision to call for strike action came as a surprise to the Finnish Forest Industries Federation, which denounced it as an illegal strike.

Reasons for strike

A two-day protest strike at Finnish pulp and paper mills took place in mid-May 2006. The action by the Finnish Paper Workers’ Union (Paperiliitto) came in response to plans by the pulp and paper manufacturer UPM to cut 2,557 jobs at its plants. Production was halted at all pulp and paper mills, except the UPM Voikkaa plant in Kuusankoski in southern Finland, which UPM has announced it plans to close, and also the Pankakoski unit of Stora Enso in eastern Finland, which is also threatened with closure. The decision to go on strike came after UPM had reported the result of negotiations with staff on impending job losses.

Chair of Paperiliitto, Jouko Ahonen, noted that redundancies are expected to continue in the sector, with several hundred jobs likely to go among the blue-collar workforce. About 1,000 white-collar employees in the pulp and paper industry are also expected to lose their jobs. Mr Ahonen emphasised that, although the strike was provoked by job cuts planned in one company, the industrial action affects the entire forest industry. He stated that union members had been ready to take action sooner, commenting that workers are tired of the constant waves of [dismissals](/search/node/areas OR industrialrelations OR dictionary OR definitions OR dismissals?oldIndex) and uncertainty regarding their jobs.

The two-day strike by factory workers was followed by protest action by industry office workers. Both the Paperworkers’ Union – which is affiliated to the Central Organisation of Finnish Trade Unions (Suomen Ammattiliittojen Keskusjärjestö, SAK) – and the Union of Salaried Employees (Toimihenkilöunioni, TU) – which is affiliated to the Finnish Confederation of Salaried Employees (Toimihenkilökeskusjärjestö, STTK) – have declared that the sector is taking a tougher line on job cuts than they have done in the past. Mr Ahonen believes that alternatives to redundancy could have been found ‘if values in the forest industry had been right’.

The decision to launch a protest strike came as a surprise to the Finnish Forest Industries Federation (Metsäteollisuus), which denounced the action as an illegal strike. Moreover, Metsäteollisuus has warned that all forms of strike action will weaken the forest industry in Finland.

Possible investor interest

Mr Ahonen revealed that patriotic investors would have been prepared to buy UPM’s Voikkaa mill. He explained that the investors did not deal directly with UPM, but through a mediator who is said to be an ‘influential public figure in very high office’.

If the deal had been closed, the names of the investors would have been made public and the mill’s product range would have changed. However, Mr Ahonen believes that the Voikkaa mill was not sold because UPM wanted to show its power and create a climate of insecurity. Mr Ahonen publicly criticised the company and accused it of not trying to find a more suitable solution: ‘The mill could have been sold and it would not even have competed with products that UPM is manufacturing. The jobs could have been saved.’

However, UPM has denied Mr Ahonen’s allegations.

Report of tripartite group on globalisation

The ongoing collective agreement in the pulp and paper sector, which was signed on 1 July 2005, called for the start of a dialogue on the effects of globalisation. A joint working group on globalisation, representing employers and workers in the Finnish paper industry, commenced activity in December 2005. The group was chaired by Permanent Secretary, Raimo Sailas, of the Ministry of Finance (FI0603029I).

On 31 May 2006, the working group published its joint final report, Paperiteollisuus – toimialan tilanne ja tulevaisuuden haasteet (in Finnish, 1Mb PDF). Both Mr Ahonen and President of Metsäteollisuus, Anne Brunila, affirmed that the report would form the basis of the dialogue that is due to continue in autumn 2006. All trade unions in the pulp and paper sector and the main labour market confederations would be involved in the social dialogue.

So far, the parties have looked into opportunities for promoting employment, productivity, effective local solutions and good practice initiatives in the sector. The report presents several proposals for action that will improve the competitiveness of the Finnish paper industry. These proposals relate to research and development, industrial energy taxation, logistic systems, investment support and the availability of wood.

One of the more interesting findings in the report is that Metsäteollisuus is proposing collective agreements from the metalworking sector as a model. This would mean greater flexibility, particularly concerning working hours.

Pertti Jokivuori, Statistics Finland, University of Jyväskylä