No Solution in Labor Dispute Between UPM Plywood and Industrial Union

The Industrial Union on March 30 rejected the mediator's settlement proposal, and the five-week strike at UPM Plywood mills in Finland continues.

March 30, 2025 (Press Release) - UPM Plywood and the Industrial Union have failed to reach an agreement on a new employer-specific collective agreement. The union today rejected the mediator's settlement proposal, and the five-week strike at UPM Plywood mills in Finland continues.

The proposal made by conciliator Jukka Ahtela on Friday was in line with the general pay increase level agreed by the Industrial Union for the export industry in Finland. The agreement would have allowed UPM Plywood employees to receive a total pay increase of 7.8% over 3 years. UPM Plywood accepted the proposal.

"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," says Juhani Tenhunen, Vice President, Operations, at 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 continues.

The overall content of the collective agreement was already agreed in August 2024 and since then the negotiations have focused only on the level of pay increases. UPM Plywood has actively sought a solution to the increases, but with no results.

"The proposal made by the mediator would have secured the purchasing power of our workers. The cost impact would have been very challenging for the business, but acceptable to allow the return to work", Tenhunen sums up.

The strikes have halted production at UPM Plywood mills in Finland. UPM Plywood mills in Finland employ 1,000 people covered by the collective agreement with the Industrial Union. Production at UPM Plywood's Otepää mill in Estonia continues as normal.

UPM Plywood

UPM Plywood offers high-quality WISA® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications. In 2023 UPM Plywood sales were EUR 422 million and it had around 1,500 employees.

UPM delivers renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. The company employs 15,800 people worldwide and has annual sales of approximately EUR 10.3 billion.

SOURCE: UPM