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Finnish Chemical, Energy Strike Wins Gains

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4 August, 2005ICEM News release No. 22/2000

Finnish chemical and energy workers ended their nationwide strike today, after their union Kemianliitto secured a substantial pay rise and a cut in working hours.

International trade union solidarity played a major role in achieving the settlement, Kemianliitto's President Timo Vallittu said.

Today, both Kemianliitto and the employers' Chemical Industry Federation approved the National Conciliator's proposal for a three-year national collective agreement, which covers around 15,000 workers in the oil, gas, chemical and pharmaceutical industries.

The agreement ends a week-long strike by 5,000 workers. The union had targeted 22 key companies in a national dispute over pay and working hours. Had the conflict not been resolved by today, the union would have called out a further 8,000 workers in the plastics and chemical products sectors.

Sympathy action pledged by Kemianliitto's sister union in Sweden, Industrifacket, played a key role in putting pressure on companies. From tomorrow, the Swedish union would have blocked all trade in industrial chemicals and gases between Sweden and Finland. This would have led to the closure of paper mills and metal industry plants from the weekend onwards due to a shortage of the chemicals and gases needed in processes.

Industrifacket had backed Kemianliitto from the onset of the dispute, after the Swedes had been alerted by the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM). Both Kemianliitto and Industrifacket are ICEM affiliates.

In addition, the Finnish Transport Workers' Union and the Seafarers' Union would have blocked the transport of chemicals from tomorrow onwards.

Earlier in the week, three companies in the sector had separately agreed to union demands in order to avoid losing orders and revenue. One of them had to disaffiliate from the employers' federation for breaking ranks.

Kemianliitto has won wage increases of around 4 percent for its members, which is well over the general level of pay raises in this year's bargaining round in Finland. A reform of the wage structure will bring further increases in 2001 and 2002, on top of the general rises in manufacturing industry as a whole.

Working hours will be cut by 8 hours or one shift annually without loss of pay. After the reduction, working hours in continuous shift work will be 34.6 hours a week, in semi-continuous shift work 35.8 hours, and in day work 36.2 hours. Further textual amendments improve the conditions for sick pay and tighten up on the use of subcontractors.

Kemianliitto President Timo Vallittu praised the unity of his membership, which covers more than 90% of the blue-collar staff in Finnish oil, gas and chemical industries. He said that even though the advent of the single European currency will increase the pressure for harmonisation, the settlement proves that workers are entitled to have their share of good results in the industry, not only the executives in the form of share-option windfalls.

"Special thanks go to our brothers and sisters in Sweden, " said Vallittu. "Their timely support destroyed the employers' attempts to prolong the dispute by importing from their plants in our neighbouring country to compensate for the loss of production. In today's globalised economy, we need practical international solidarity and co-ordination to ensure successful collective bargaining."

The ICEM-affiliated Finnish paperworkers' union Paperiliitto is still in negotiations for a significant pay increase, shorter working hours and restrictions on the use of subcontractors.