Finnish labor reform strikes impacting companies: Factbox by Reuters

Finnish labor reform strikes impacting companies: Factbox by Reuters

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© Reuters. FILE PHOTO: A view of the Neste refinery located in Tuas South in Singapore May 16, 2023. REUTERS/Caroline Chia/File Photo

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(Reuters) – A union strike that disrupted ports and the rail system is impacting Finnish exports and imports.

The two-week strike, which began on March 11 and follows other strikes since October, aims to protest government plans to reform the labor market and reduce social protection, changes that the government deems necessary.

Unions and their federation SAK declared on March 20 that industrial, logistics and electricity workers would extend their current two-week strike by one week, until March 31.

Here’s how businesses have been affected:

THE BOLIDEN

The Swedish metals maker said March 22 that it expects a negative impact of around 500 million crowns ($47.6 million) on its first-quarter operating profit due to strikes in Finland.

FINNAIR

The national carrier expects disruptions to its fueling services and plans measures to allow fueling at stations outside Finland.

According to the latest information, there will be no impact on flights from March 22, the airline said.

KEMPOWER

Kempower, a maker of electric vehicle charging solutions, cut its first-quarter forecast on March 22 due to strikes affecting transportation and delivery delays.

It now estimates that first-quarter revenue will be significantly lower than last year’s figures of 55.8 million euros ($60.37 million) and that operating earnings before interest and tax (EBIT) will be “significantly negative,” he said in a statement.

METSA CARD

Forestry company Metsa Group closed five factories, including Metsa Board’s Joutseno factory, and said it would assess payment of salaries to affected employees.

The Metsa Group said on March 21 that production would also stop at four of its sawmills on March 22, and estimates that four more sawmills will stop on March 25.

IN THIS

The oil and biofuel group could stop production at its Porvoo refinery, with the strike interrupting the transport of raw materials and leading to saturation of storage facilities.

Neste said on March 26 that fuel was no longer available at some of its stations and that the situation would worsen as the strike continued, as it was no longer able to ensure supplies to customers and the availability of products in its network of stations.

NOKIAN TIRES

The tire maker announced March 22 that it would temporarily lay off 350 employees at its automobile tire plant in Nokia (ET:) for 90 days due to the strikes. Inventories are filling up as strikes prevent him from delivering to customers, he said.

OUTOKUMPU

On March 21, stainless steel maker Outokumpu lowered its base profit forecast for the first quarter for the second time.

It estimates the combined negative impact of the three-week strike on adjusted EBITDA at around €65 million, of which the additional week represents around €25 million, a spokesperson said.

SSAB

The Swedish steelmaker said the strike would reduce SSAB Europe’s first-quarter operating profit by some 300 million crowns.

The prolonged strike will disrupt operations at the SSAB Europe plant in Raahe, Finland.

STORA ENSO

The forestry company has halted production at its packaging board factory in Varkaus and suspended the salaries of the affected employees.

Stora Enso (OTC:) announced on March 22 that it would begin to completely close its Imatra and Oulu plants on March 24. She expects them to be completely closed by the start of Easter, the spokesperson said.

UPM

Production was halted at UPM’s paper mills in Kymi, Rauma and Jämsänkoski as well as at two pulp mills. However, the Jämsänkoski printing paper machine is scheduled to restart on March 25 for five days, a spokesperson said.

The forestry company suspends the salaries of the employees concerned.

VR GROUP

State railways, which normally run 250 freight trains a day, said the strike had halted freight traffic until March 31. Passenger transport would not be affected.

($1 = 10.5042 Swedish crowns)

($1 = 0.9243 euros)

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