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Finnish Pulp/Paper Salaried Staff Dispute Settled in Last Minute Mediation

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16 June, 2008

Last-ditch efforts today by Finnish National Conciliator Juhani Salonius to avert a strike across the nation’s pulp and paper sector succeeded, with ICEM affiliate Toimihenkilöunioni TU and the Finnish Forest Industries Federation agreeing to a 21-month labour agreement.

The employers’ association entered the mediation session this morning at 08h00 claiming inability to offer a pay increase, but by late morning the two sides had agreed on a pay increase of 5.3% over the life of the agreement.

Effective 1 July 2008, salaried staff will receive an increase of not less than 2.7%, or €60-per-month. In addition to that, pay hikes of 1.3% and a one-off bonus of €110 per worker will be paid out on local levels.

 A 0.4% increase is scheduled for distribution on the local level in March 2009. Also, a national pay increase of 0.9% will take effect in March 2009.

Both parties retain the right to terminate the agreement in March 2009.

“Our rank and file will get a just compensation for the significant increase of their work load and responsibility,” stated TU President Antti Rinne, referring to significant job cuts that have occurred since the year 2000.

He added that the agreement “will close the gap between the pay development of salaried employees and (other) workers” within the country’s pulp and paper industry. He said it was important for TU that pay decisions on the local level will not be solely made by the companies.

The agreement also states that the two parties will begin a multi-year programme to develop pay patterns for salaried workers. Other improvements made include family leave, specifically a six-day paid paternity leave. Added compensation for safety representatives was achieved, and a working-hour bank established.

The employers gave up their concessionary proposals on travel time, shift allowance cuts, and their demand to exclusively decide on working hours.

“We credit our Finnish affiliate, and their members’ decision toward strike action in order to resist the concessions the employers’ federation has put forward,” said ICEM General Secretary Manfred Warda. “It is a progressive and forward-looking collective agreement, and most importantly it came without the necessity to conduct industrial actions.”

The settlement averts a strike planned at noon today by 1,000 senior employees at ten Stora Enso operations across Finland. Further rolling strikes were scheduled to occur at other major Finnish pulp and paper producers in June. Some 6,500 salaried, technical, and professional workers are covered by the new agreement.