Already delayed by “talks about talks”, the dispute between the Paperworkers Union in Finland and five UPM businesses – together or singly – is now in its eighth week, with little prospect of movement.
Part of the problem is that the union wants a single, group-level agreement, while UPM wants to negotiate business-specific agreements for its “unique portfolio of versatile businesses”. This reflects a situation it now has with its forest products companies, where UPM Plywood and UPM Timber negotiated directly and signed agreements in December.
But the Papermakers Union sees these as “ideological objectives”, and is also fighting UPM’s proposition that it is the victim of force majeure, an expression it has been using in letters to customers, presumably to limit its contractual liability.
Rejecting that concept – and urging customers to do so – is another way in which the union can put pressure on employers.
Communications papers customers have been told some orders may be postponed, while UPM “will not be able to accept or confirm all additional orders placed for the duration of the strike”. Customers will be advised individually whether their orders are affected.
UPM says it wants to negotiate business-specific agreements between the union and its UPM Pulp, UPM Communication Papers, UPM Specialty Papers, UPM Raflatac and UPM Biofuels businesses “in order to support growth and competitiveness”.
President and chief executive Jussi Pesonen says the focus is “not on next month or next year, but rather on pursuing mutually beneficial outcomes that will enable each business and their employees to prosper well into the future, into the 2030s”.
So far supplies to customers have come mostly from facilities outside Finland – the company also has production seven mills in Germany, plus one each in Austria, the US and Scotland – but supplies of some products, especially in packaging and labelling, are tight.
It’s already the longest strike in the Finnish paper industry, and set to continue until at least March 12, with the support of electricians and transport unions.
After last month reporting a strong 2021 for UPM, Pesonen has had to confront “significant uncertainties” in the outlook for 2022. Among reasons, he cites the ongoing pandemic, continuation of the global economic recovery, the unusual energy market situation, tight raw material supply chains… and the “labour negotiations in Finland”. Or lack of them.
Comments