Unions turned down a proposal for a labor pact, extending a crippling paper industry shutdown into its fourth week, in a dispute that is costing the country hundreds of millions of dollars in lost earnings.
Wildcat strikes and an industry lockout imposed by employers on May 18, have closed mills across the country, including those of some of the world's largest paper makers, UPM-Kymmene Corp and Stora Enso Oyj. The paper industry accounts for 8 percent of GDP and about a third of Finnish exports.
There were fears that the dispute would spread to other sectors as unions rallied to support the Finnish Paper Workers' Union. Also, analysts said, global paper prices could rise in any prolonged dispute as Finland's production amounts to 15 percent of the world's total.
The rejection by the union on Sunday came hours after forest industry employers had decided to accept the proposal, presented on Wednesday by National Conciliator Juhani Salonius. No new talks were planned.
"I'll invite the two sides again for talks at some suitable moment," Salonius said.
No details of the proposal were given, but major points of disagreement include the use of temporary workers and holiday shutdowns, with employers demanding that plants be kept running during Christmas and the long midsummer weekend, as in other branches of industry. Employers also want to limit paid sick leave and some benefits.
Arto Tahtinen, the chief negotiator for the employers' organization, said his side had informed the union that the industry is struggling in a negative economic climate.
"Despite knowing all this and still rejecting the deal, the paper workers' union is taking on quite a hefty responsibility," Tahtinen said.
Union leaders said the proposed solution was not acceptable because it reduced job security.
"There are deteriorations in job security for our workers, including in redundancy policies and the use of temporary labor," said Jouko Ahonen, the chairman of the paper workers' union. "Also, the position on Christmas and midsummer work is not in the shape as required by our [the union's] leaders."
It was not clear how long the shutdown would continue, but employers have extended a May 18 lockout until the end of June, and other unions have said they would consider supportive action.
On Friday, the government appealed for an end to the costly dispute, saying it threatened the economy.
The shutdown is costing the forest industry US$49 million a day in lost production, and unions already have paid out some US$10 million in compensation to striking workers.
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