Finland paper industry strike ends after agreement reached

LONDON (ICIS)–A strike and blockade in the Finnish paper sector, a key chemicals end market, was called off on Monday after unions agreed proposals that removed a controversial working hours amendment.

Strike action in the sectors was ongoing last week and expected to last another fortnight, according to sources on 7 February, but new proposals brought forward by a national mediator will remove the kiky hours – an additional 24 hours’ working time added to many industries by government order.

A blockade that began on Monday has been scrapped and employees are expected to return to work, according to trade body Paperiliitto.

The accord follows the agreement of new collective labour agreements for the chemicals sectors in the country that averted expectations of a strike this week.

One of Finland’s key industries, pulp and paper is the fourth largest downstream industry for caustic soda in Europe and consumes almost 14% of the volumes produced, according to Eurochlor.

Finland consumes 8,000-10,000 dry metric tonnes (dmt) per week, of around 180,000 dmt/week total European consumption, according to market sources, with the bulk of that being purchased by the paper industry.

A protracted strike for the industry could have been “extremely painful” for the European caustic soda sector, according to another source.

Local player Kemira, which relies on the paper sector as the main market for its domestic sales, had found alternative sources for its product during the industrial action.

Covering 11,500 employees in the chemicals, oil, natural gas, petrochemicals and plastics sectors, the new collective labour agreements for chemicals deal includes a 3.3% pay rise over the next 25 months, with the agreement covering the period up to 31 December 2021.

The paper and forestry industry deals run over the same time frame.

Additional reporting by Chris Barker