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Helsinki - Finland's forest industry lobby said it feared companies will foresake the Nordic country after workers at a Finnish mill owned by South Africa's Sappi [JSE:SAP] walked out in the latest of a series of strikes on Wednesday.
The Finnish Forest Industries Federation said the Pro Union trade union for office workers has paralysed pay talks with unlawful actions.
"For what we have seen until this point, I find it clear the companies will move support and service functions out of Finland," industry lobby official Jari Forss told Reuters.
The Finnish forest industry, which contains global heavyweights UPM-Kymmene and Stora Enso, has faced several domestic white-collar strikes lately over a pay dispute.
The Sappi mill strike started a day in advance as the tensions between union and industry mounted, while other white-collar worker strikes continued at several sites of UPM, Stora Enso and Metsaliitto.
The companies themselves have not announced shifting operations overseas, but a UPM executive told Reuters last month it may consider such moves if disruptions continue.
Union officials say the strikes should not be blamed for companies' decisions to move operations overseas.
"That is due to business decisions. These strikes do not have any effect on them," Antti Rinne, the Pro Union chairperson told Reuters.
The series of strikes come as the loss-making paper industry is seeking to curb costs due to shrinking paper demand.
According to Pro, a total of around 1 200 white-collar workers at UPM will be on strike for the next two weeks. A similar strike at the company took place in April, costing it €1m.
About 1 500 strikers at Stora Enso and Metsaliitto were supposed to return to work on Wednesday, but strikes were extended at some sites.
The industry is ready to raise white-collar pay by 2.5%, although the union demands 3.5% and changes including higher pay for women.
Talks between the union, federation and Finnish state mediator were continuing on Wednesday. The sector has lost eight Finnish paper and pulp mills and thousands of Finnish jobs cut in the last five years.
The Finnish Forest Industries Federation said the Pro Union trade union for office workers has paralysed pay talks with unlawful actions.
"For what we have seen until this point, I find it clear the companies will move support and service functions out of Finland," industry lobby official Jari Forss told Reuters.
The Finnish forest industry, which contains global heavyweights UPM-Kymmene and Stora Enso, has faced several domestic white-collar strikes lately over a pay dispute.
The Sappi mill strike started a day in advance as the tensions between union and industry mounted, while other white-collar worker strikes continued at several sites of UPM, Stora Enso and Metsaliitto.
The companies themselves have not announced shifting operations overseas, but a UPM executive told Reuters last month it may consider such moves if disruptions continue.
Union officials say the strikes should not be blamed for companies' decisions to move operations overseas.
"That is due to business decisions. These strikes do not have any effect on them," Antti Rinne, the Pro Union chairperson told Reuters.
The series of strikes come as the loss-making paper industry is seeking to curb costs due to shrinking paper demand.
According to Pro, a total of around 1 200 white-collar workers at UPM will be on strike for the next two weeks. A similar strike at the company took place in April, costing it €1m.
About 1 500 strikers at Stora Enso and Metsaliitto were supposed to return to work on Wednesday, but strikes were extended at some sites.
The industry is ready to raise white-collar pay by 2.5%, although the union demands 3.5% and changes including higher pay for women.
Talks between the union, federation and Finnish state mediator were continuing on Wednesday. The sector has lost eight Finnish paper and pulp mills and thousands of Finnish jobs cut in the last five years.
