EUROPE is running out of paper because the Finnish forestry and paper-making multinational giant UPM is trying to break longstanding collective bargaining arrangements with its unions.

Finnish paperworkers who have been on strike since January 1, with strikes expected to run through to March 12.

The unions say that UPM has put the European print, paper and packaging industry in crisis with an anti-union attack.

The strike is estimated to be costing UPM up to €20 million per week and is expected to to force the company to break contracts to supply paper, leading to a European-wide paper shortage.

Intergraf, the European printing industry employers’ body, has called on UPM to settle the strike, warning that 40 per cent of the paper required by its print and packaging companies will not be available if the strike continues. 

UPM has written to some of its customers warning of its inability to meet its commitments, and claiming “force majeure,” a clause that limits liability for breaking contracts due to an “unavoidable catastrophe,” such as the Covid-19 pandemic.

Unions are calling on UPM customers to reject the claim, as the situation was avoidable, and is created by the company’s refusal to negotiate without its preconditions being met.

The European Court of Justice ruled in 2021 that “force majeure” was not applicable in a case of industrial action that met legal requirements.

The Finnish unions say the preconditions would weaken their bargaining position in future, and would leave groups of workers without representation. 

Workers at UPM are represented by Paperiliitto (Paperworkers Union), and Ammattiliitto Pro, the white-collar union in Finland. 

At a global meeting of pulp and paper unions, the Finnish unions called on unions in other countries to put pressure on employers to reject the “force majeure” claim.

The Finnish unions said that the company can end the crisis by returning to the negotiating table and reaching an agreement that complies with the general labour market policy in Finland.

Petri Vanhala, president of Paperiliitto, said: “We want to get back to work at UPM. The industry standard has been set by our collective agreements with the other companies in the sector.

“The only barrier we face is an anti-union attack by UPM management, for ideological rather than business reasons.”

The Finnish unions are affiliated, along with other papermaking unions Britain, Germany, France, US, Austria and Uruguay to the IndustriALL global union federation.

Tom Grinter, who heads up its paper-making sector, said: “At a time when economic recovery from the pandemic is still fragile, we face a totally manufactured supply chain crisis.

“We need paper for everything — food labels, packaging, paper towels and print.

“UPM is holding Europe to ransom with its stubborn insistence on breaking collective bargaining. The company hopes to dodge its responsibilities by claiming ‘force majeure.’

“Unions will approach UPM’s customers directly to expose this tactic for the hollow sham that it is.”