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Finland's Paper Dispute and Lockout Resolved

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28 July, 2005

The devastating seven-week lockout of the Finnish paper sector by Finland’s paper companies is over. Prime Minister Matti Vanhanen mediated talks on 27-29 June and ICEM affiliate Paperiliitto’s Delegate Council approved the three-year compromise contract on 1 July.

Finland’s 25,000 paperworkers gained wage increases similar to the national incomes settlement. They will receive 2.5% this year, 1.9% next year (taking into effect the country’s gender equality allowance), and union and management will negotiate in 2007 for the third year increase. Paperiliitto successfully resisted the worst of the industry’s concessionary proposals, including unpaid sick leave, splitting of holidays, and 12-hour workdays without overtime pay compensation. Christmas and mid-summer shutdown days will be eliminated, but workers will be compensated by reduced working time throughout the year.

On the all-important issue of contract labour, trade union acceptance must occur on all outsourcing. The two sides agreed to let individual plant negotiating teams reach agreement on the issue locally, but if that fails the issue will be submitted to an arbitration panel composed of the national union, the employers’ federation and an impartial chairman. Introduction of contract labour can then only occur with a unanimous decision. Paperiliitto and the employers will again look at the contract labour issue in mid-term of the contract to review its effectiveness. The lockout by papermaking employers, begun 18 May, was costing €40million per day across all sectors.