Sweden Paper Mills Shutdown by Union Strikes

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Union members from the Swedish paper industry have called a strike at six paper mills following a dispute over wage bargaining. Employers say the strikes may cost SEK 50 million per day, according to the newspaper Dagens Nyheter.

"This risks hurting the entire industry and the Swedish model," Marie Arwidson, president of the industry employers' organization, told the newspaper. Talks broke down earlier this month between the Swedish Paper Workers' Union (Svenska Pappers) and the employers' Forest Industry Association (Skogsindustrierna, SFIF), with members rejecting a salary increase of 3.2% over 22 months, which employers say is in line with the industry average. An overtime and new staff ban and a blockade of temporary workers started at all Swedish papers mills April 12, and selective strikes began at the six mills on April 16.

The mills affected by the strike are SCA Munksund, Iggesund, Korsnäs Gävle, Stora Enso Skoghall, Billerud Skärblacka, and Södra Cell Värö. Around 3,000 union members are taking part in the strike. Negotiations between Svenska Pappers and Skogsindustrierna have been going on since the middle of December last year. The previous collective agreement ended March 31.