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UPM and Paperworkers’ Union Reach Agreement

UPM and the Paperworkers’ Union have agreed on first-ever business-specific collective labour agreements for 5 UPM companies. The strike at UPM mills in Finland will finish instantly and staff will return to work. The strike coated UPM Pulp, UPM Communication Papers, UPM Specialty Papers, UPM Raflatac and UPM Biofuels items in Finland. UPM will restart buyer deliveries as quickly as attainable.

The conciliator submitted settlement proposals for separate collective labour agreements for UPM Pulp, UPM Communication Papers, UPM Specialty Papers, UPM Raflatac ja UPM Biofuels yesterday, and each events authorized them at present.

“We are very happy that the events have authorized all settlement proposals and that the Paperworkers’ Union’s lengthy strike ends. UPM and the union have made historical past collectively by agreeing on 5 business-specific collective labour agreements, which substitute the paper business´s outdated settlement stemming from the 1940’s. UPM’s long-standing aim has been to take collective bargaining to a stage the place the circumstances of the work are finest recognized, i.e. the person companies. The negotiations result in agreements that profit each the companies and the staff and strengthen the premises for achievement nicely into the longer term,” says Riitta Savonlahti, Executive Vice President, Human Resources, UPM.

“In the negotiations, many features of the contracts have been considered from a completely new standpoint. The course of was lengthy however, in the long run, we have been in a position to agree on phrases of employment that take the wants and particular options of our companies under consideration. New phrases improve the productiveness and competitiveness of the companies and mills in addition to guarantee good phrases for workers, too,” says Jyrki Hollmén, Vice President, Labour Markets at UPM.

The contract interval of the brand new agreements is 4 years. Pay will increase are in keeping with the present business norm. Revisions to wages will probably be negotiated after the primary two years. New agreements are structurally easier than the outdated one, and the variety of pages is about half of the sooner.

A big change in all business-specific agreements is the substitution of periodical pay with hourly pay. Hourly wages are paid by the work accomplished, making the formulation of the pay simpler to grasp. New collective labour agreements make it attainable to take competence and efficiency under consideration in wage formulation. All companies additionally agreed on added flexibility to shift preparations and the usage of working time.

Business-specific options to enhance productiveness

UPM Pulp agreed on switching to uninterrupted 365-day working of the pulp mills and extra versatile use of workforce throughout the lengthy upkeep shutdowns. Restrictions on the usage of fixed-term staff have been eliminated. Going ahead, wage formulation helps studying and competence, and the event of office practices.

UPM Communication Papers, our graphic paper enterprise, agreed on extra hours and versatile use of working time, that are important for clean operation. Depending on the working time format, working hours will enhance by 24-32 hours per yr, aside from day work, the place the working hours stay unchanged. With the changeover to hourly pay, the additional hours enhance earnings accordingly. On weekly stage, the rise of working hours is about half an hour per week. In addition, an encouraging pay system was agreed, which improves significantly the earnings of upkeep and day work. The settlement features a wage fee assure for the primary two years of the contract interval.

UPM Specialty Papers agreed on phrases that enhance competitiveness and reliability of deliveries. The new collective labour settlement widens the scope of native bargaining additionally at mill stage and improves operational profitability throughout public holidays. The formulation of pay rewards good efficiency higher than beforehand.

UPM Raflatac’s collective labour settlement makes it attainable to construct extra versatile working hour preparations and resourcing of Tampere manufacturing facility. Thus, the brand new settlement paves the way in which for a rise in capability utilization, that improves manufacturing effectivity and opens alternatives for employment.

UPM Biofuels, i.e., the Lappeenranta biorefinery, agreed on versatile use of shifts and coaching in shift work. Pay construction helps private improvement and good efficiency higher than earlier than. In addition, the events agreed on preparations, which allow the refinery to be saved in production-ready state, as a substitute of full ramp-down, additionally beneath attainable work stoppages.

“In Finland, now we have wonderful mills and extremely expert staff. It is nice that we get to begin the work at mills once more. Now it’s time to maneuver on collectively,” says Riitta Savonlahti.

The Paperworkers Union’s strike at most UPM mills in Finland started on 1 January 2022 and lasted nearly 4 months. Originally, roughly 2,100 members of the union went on strike, however roughly 200 of them have been ordered to uphold duties vital to society, resembling warmth technology and water administration, by a court docket order.

UPM’s companies within the mechanical forest business, UPM Plywood and UPM Timber, signed every a 3-year collective labour settlement with the Industrial Union already in December 2021 previous to the ending of the earlier settlement. The agreements enable for versatile market associated changes in operations and have already benefited each the companies and their staff.

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