May 19, 2006. /Lesprom Network/. Another strike hit the Finnish paper sector on May 17, which has been effectively paralyzed since Monday, 15 May, after the announcement of an industry-wide strike by blue-collar workers, Global Insight reported. The strike, scheduled to last for two days was a protest against restructuring moves at large paper companies. While those workers returned to work on May 17, white-collar employees went on strike, causing another 24-hour stoppage. Paper, cardboard and pulp production was expected to gradually resume throughout the course of May 17, but because line managers were on strike, the factories are will not be fully functional until May 18. According to Agence France-Presse reports, about 19 000 workers and technicians at 64 sites stopped work on Monday morning in a protest against restructuring programmes undertaken by Finland's two paper giants, Stora Enso and UPM. Stora Enso, which reported losses last year, announced 5 000 job cuts, while UPM said it would shed 3 000 jobs, nearly all of which would be in Finland. The companies have argued that the cuts are necessary because of increased competition from countries with lower labour costs, as well as ‘low pulp prices and rising costs of raw materials and energy’. Significance: Last year, the Finnish paper industry was hit by a significant, prolonged strike which prompted Global Insight to downgrade the country’s operational risk rating. The six-week stoppage resulted in a 10% reduction in Finland’s pulp output and a slowdown in overall economic growth. However, the paper producers are finding it increasingly difficult to ignore the realities of globalization, and more strike action from well-unionized employees can be expected.