(UPM, Helsinki, March 30, 2025 at 17:40 EEST) - UPM Plywood and the Industrial Union have failed to reach an agreement on a new employer-specific collective agreement. The union today rejected the mediator's settlement proposal, and the five-week strike at UPM Plywood mills in Finland continues.

The proposal made by conciliator Jukka Ahtela on Friday was in line with the general pay increase level agreed by the Industrial Union for the export industry in Finland. The agreement would have allowed UPM Plywood employees to receive a total pay increase of 7.8% over 3 years. UPM Plywood accepted the proposal.

"Hundreds of thousands of workers from various industries are already covered by agreements in line with the general level, and the collective agreement that UPM Timber concluded with the Industrial Union in January is also in line with the pay increase level in Finnish export industry," says Juhani Tenhunen, Vice President, Operations, at UPM Plywood.

"Profitability challenges caused by low demand in the construction sector and record high wood prices limit our ability to raise wages above the general line," Tenhunen continues.

The overall content of the collective agreement was already agreed in August 2024 and since then the negotiations have focused only on the level of pay increases. UPM Plywood has actively sought a solution to the increases, but with no results. "The proposal made by the mediator would have secured the purchasing power of our workers. The cost impact would have been very challenging for the business, but acceptable to allow the return to work", Tenhunen sums up.

The strikes have halted production at UPM Plywood mills in Finland. UPM Plywood mills in Finland employ 1,000 people covered by the collective agreement with the Industrial Union. Production at UPM Plywood's Otepää mill in Estonia continues as normal.

For further information please contact:
Juhani Tenhunen, Vice President, Operations, UPM Plywood, tel. +358 (0)20 415 8555

UPM, Media relations
Mon-Fri 9:00-16:00 EEST
tel. +358 40 588 3284
media@upm.com

UPM Plywood offers high-quality WISA® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications. In 2023 UPM Plywood sales were EUR 422 million and it had around 1,500 employees.  - www.wisaplywood.com

UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. Our performance in sustainability has been recognized by third parties, including EcoVadis and the Dow Jones Sustainability Indices. We operate globally and employ approximately 15,800 people worldwide, with annual sales of approximately €10.3 billion. Our shares are listed on Nasdaq Helsinki Ltd.
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