Business Case Studies, Industry Analysis Case Study, Finnish Paper Industry,The Lockout and its Setbacks

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Industry Analysis Case Study

Case Title:

The Finnish Paper Industry: The Lockout and its Setbacks

Publication Year : 2005

Authors: Poulami Bhattacharya,T. Phani Madhav

Industry: Industry Analysis


Case Code: INA0049

Teaching Note: Not Available

Structured Assignment: Not Available

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In November 2004, the major employers' organisations of the paper and pulp industry in Finland witnessed a series of protests and strikes by the one million workforce of the Paper Workers' Union (Paperiliitto). In May 2005, major paper mill companies like Stora Enso and UPM-Kymmene, announced a lockout and closed mills across the country, with a demand that the paper industry should also function during the holidays in order to improve productivity, which, the workers' Union opposed. The six-week lockout resulted in a huge loss of 1.5 billion euros in export earnings and 40 million euros in tax revenues. It is also estimated that loss in sales per day was 40 million euros.

Pedagogical Objectives:

  • To discuss the problems of industrial relations in Finland’s paper industry
  • To discuss the impact of strike on the Finnish economy.

Keywords : Finland,Government and Business Environment Case Study, Forest industry, Lockout and strike, Finnish Paper Workers’, Union, Europe, Finland economy, National Income Policy Agreement, Industrial relations, Growth of forest industry in Finland, Productivity, Working hours, Nordic model

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