Industrial Union´s strike at UPM Plywood mills continues

The five-week strike at forestry giant United Paper Mills (UPM) Plywood in Finland will continue as the UPM and the Industrial Union (Teollisuusliitto) failed to reach an agreement on a new employer-specific collective agreement, said UPM and Industrial Union in on Sunday.

The union on Sunday unanimously rejected the mediator's settlement proposal made by conciliator Jukka Ahtela on Friday.

The new phase of strike covers all shifts starting between March 31 at 00:00 and April 6 at 23:59 according to the pre-announced schedule, said the union.

The strike does not apply to work performed to protect human life and health, nor to work performed at the company’s own occupational health station, nor to work performed in the company’s factory fire departments.

The strikes have halted production at UPM Plywood mills in Finland, said UPM in a press release on Sunday.

"Hundreds of thousands of workers from various industries are already covered by agreements in line with the general level, and the collective agreement that UPM Timber concluded with the Industrial Union in January is also in line with the pay increase level in Finnish export industry," said Juhani Tenhunen, Vice President, Operations, of UPM Plywood.

"Profitability challenges caused by low demand in the construction sector and record high wood prices limit our ability to raise wages above the general line," Tenhunen added.

Production at UPM Plywood's Otepää mill in Estonia, however, will continue as normal.

The Industrial Union has been observing strike in different phases to press home various demands including pay hike and contract solutions for the technology and chemical industry workers.