As Finland produces about four per cent of the world’s total paper market, the lengthy strike sparked fears of paper shortages, particularly in Europe where Finland has a 60 per cent share in the magazine paper industry.
But according to Printing Industries manager of industry and commercial policy, Hagop Tchamkertenian, the Finnish paper dispute is also likely to impact on the Australian printing industry, with possible disruptions to paper supplies and the likelihood of higher prices taking hold.
“With transport costs to Australia becoming more and more prohibitive for paper suppliers, they have indicated that their current priority is to supply customers in Europe and elsewhere who have been severely affected by the dispute,” says Tchamkertenian.
“This means that Australian printers who rely on imported paper are likely to face delays in supply of paper during the next several months.”
The strike over pay and holiday stoppages ended on July 1, when the Finnish Forest Industries Federation and the Paperworkers’ Union signed a new collective labour agreement.
The agreement, which applies to about 24,000 workers, is in line with the general collective labour agreement in Finland and allows the running of paper mills during Christmas and mid-summer.
The cost impact of the new agreement will be 4.4 per cent for the first two years and the third year will be agreed upon separately during autumn 2007. It also allows for local agreements on the use of subcontractors in maintenance and services or an agreement to be negotiated by an impartial chairman elected by both parties. In addition, the contract allows local agreements on new kinds of shift and work time arrangements.
Finnish Forest Industries Federation president Timo Poranen says the three year agreement offers good opportunities to renew the ways to operate in the pulp and paper industry.
“It will also strengthen the industry competitiveness in the rapidly changing operating environment,” says Poranen. “From the competitiveness point of view, we made progress in key questions, and in that respect the last few weeks can be seen as an investment in the future. Although the cost pressures remain the same in the global competition, we will now be able to reduce slightly the competitors’ lead.”
The Union, however, says the agreement still fails workers in some areas, as it found no solutions to reduce high levels of absenteeism and shortened paper workers’ working time.
The dispute first erupted in November, when forest industry employers opted not to take part in nationwide pay talks. The conflict then escalated and lock-outs began on May 18 when firms – including Stora Enso and UPM-Kymmene – shut out staff after weeks of union protests.
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