Union terminates collective agreements with UPM

Finland’s Paper Workers' Union Paperiliitto has terminated its collective agreement with UPM Pulp, UPM Communication Papers, UPM Specialty Papers, UPM Raflatac and UPM Biofuels divisions.

UPM informs that the current collective agreement is terminated to expire mid-term on 21 or 22 April, depending on the agreement. Paperiliitto says it terminated the existing collective agreement because there was no progress in wage review negotiations. Negotiations will be pursued, but on all contract terms and not only wages.

The now terminated collective agreement started in 2022 and was based on a settlement proposal by a national mediator, Paperiliitto explains. It provided for wage negotiations after the first two years of the agreement, and was to be terminated if no agreement on wages could be reached, as is the case now, the trade union says.

UPM regrets the trade unions decision to terminate the agreement in the middle of the contract period, saying that it is important to define wage increases in relation to mutually agreed productivity improvements in a significantly changing business environment. Negotiations with the union will continue as soon as possible, the company explains.

The ongoing political strikes at ports in Finland are not related to the negotiation process between UPM and Paperiliitto, UPM notes, explaining that these strikes are very unfortunate and affecting their businesses.

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