UPM Plywood and the Industrial Union remain deadlocked in their labour dispute, with the union rejecting a mediator’s proposal that included a total pay increase of 7.8% over three years. The strike, now in its sixth week, continues to shut down production across UPM Plywood mills in Finland. UPM accepted the proposed agreement, which matched the general pay rise level agreed earlier for Finland’s export industry, according to a company statement on March 30, 2025.
Conciliator Jukka Ahtela presented the settlement proposal on Friday. UPM Plywood stated that although the cost impact would have been challenging, the offer was acceptable to restore operations. Vice President of Operations Juhani Tenhunen emphasized that the company’s financial constraints—driven by weak construction demand and record high wood prices—limit its capacity to go beyond the general industry level.
The framework of the new collective agreement was finalized in August 2024, with subsequent talks focusing solely on wage increases. UPM Timber, a separate unit, reached a similar agreement with the Industrial Union in January 2025.
The strike affects 1,000 Finnish workers covered by the collective agreement. UPM’s Otepää mill in Estonia remains in full operation.
