UPM and the Paperworkers’ Union have not been able to come to new collective labor agreements. On April 14, the union turned down four settlement proposals submitted by the conciliator. The prolonged strike at UPM Pulp, UPM Communication Papers, UPM Specialty Papers, UPM Raflatac and UPM Biofuels units in Finland, therefore, will continue.

“We are deeply disappointed in the decision of the union and in the continuation of the strike that has already lasted 3.5 months,” says Jyrki Hollmén, vice president, labor markets at UPM. “UPM has been negotiating with an earnest mind and made several compromises. We also accepted the conciliation proposals. Modernizing the agreement stemming from the 1940s would be important both for the employees and the company.

“It is very disappointing that after intensive negotiations, no business was able to reach a conclusion. Petri Vanhala, chairman of the Paperworkers’ Union, confirmed in the mediation of all businesses that each business can be agreed separately,” adds Hollmén. “The mediation found settlement proposals for four businesses that took the needs and wishes of both parties into account. We were confident that both parties undertook to accept these settlement proposals and industrial peace would resume. Now that the union has turned down the once drafted proposals, our businesses will make a fresh start.”

The union board has announced that the strike started on January 1 will continue until May 14, unless agreements are reached before that time. Currently, approximately 2 000 members of the union are on strike. Approximately 200 union members are working in tasks critical to society, such as heat generation and water management, in line with a court order of January 21, 2022.

UPM’s mechanical forest industry businesses, UPM Plywood and UPM Timber, each signed a three-year collective agreement with the Industrial Union in December 2021. UPM will service its customers from its mills outside of Finland to the extent possible. UPM will disclose its Q1 results on April 26.