UPM’s Negotiations with Paperworkers’ Union Hit a Snag

SEATTLE (Scrap Monster): The negotiations between UPM and Paperworkers’ Union have hit a crossroad. The company has expressed interest to indulge in a business-specific collective bargaining with the Union, whereas the Union has made it clear that it does not prefer negotiating with UPM’s businesses, but instead looks forwards to a company-level single collective labour agreement.

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The paper industry’s existing collective labour agreement is more than five decades old and does not meet the present day working conditions. Today’s operating environment of the paper and pulp business is completely challenging and the agreement does not ensure competitiveness. The Union had earlier made it clear that employee representatives from UPM’s businesses cannot participate in collective bargaining. Also, it had demanded that all negotiations must be held with the union management.

However, UPM argues that it is essential that the voice of personnel from various businesses is directly heard in the collective bargaining negotiations, as they are the ones who know specific business circumstances and everyday work at the mills in a better way. The company noted that it offers equal, competitive benefits and incentives to all its employees and that it is committed to further develop these.