Paper mills on strike again
Workforce Planning: Planned layoffs at UPM-Kymmene led to strikes in Finland.
Personnel planning Planned job cuts at UPM-Kymmene lead to strikes in Finland European paper producers are currently struggling with various problems. For example, stagnating sales combined with rising energy, raw material and transportation prices are causing the industry considerable problems. Of the five leading companies in Europe, only one (UPM-Kymmene) was just in the black last year, while the others suffered losses. And although almost all paper producers have implemented price increases in the last twelve months, the cost increases could not be sufficiently cushioned. In addition, the companies producing in Finland were affected by strikes last year, which also had a negative impact on their operating results. On May 12 of this year, the second largest European paper manufacturer, UPM-Kymmene, announced that a further round of job cuts was imminent. Specifically, the Group plans to close four paper mills and cut more than 2,500 jobs over the next three years.
In response to these intentions, the Finnish paper workers' union Paperiliitto brought Finnish paper production to a standstill on May 15 and 16. Among other things, it is demanding that company management "plan beyond the quarterly results". The strike was therefore extended to the whole of Finland in a show of solidarity.
M-real estimates the damage caused by the strike at around 4 million euros.
The strike has hit the company at the worst possible time. After being in the red in 2005, M-real was only recently able to announce its return to profitability. The Finnish Forest Industry Association, to which the paper producers are affiliated, puts the total damage caused by the two-day strike at 80 million euros. Paper mills in Finland resumed production at 6 a.m. on May 17.
Jürgen Franck
Picture: M-real Kirkniemi was also affected by the strike.
In response to these intentions, the Finnish paper workers' union Paperiliitto brought Finnish paper production to a standstill on May 15 and 16. Among other things, it is demanding that company management "plan beyond the quarterly results". The strike was therefore extended to the whole of Finland in a show of solidarity.
M-real estimates the damage caused by the strike at around 4 million euros.
The strike has hit the company at the worst possible time. After being in the red in 2005, M-real was only recently able to announce its return to profitability. The Finnish Forest Industry Association, to which the paper producers are affiliated, puts the total damage caused by the two-day strike at 80 million euros. Paper mills in Finland resumed production at 6 a.m. on May 17.
Jürgen Franck
Picture: M-real Kirkniemi was also affected by the strike.
