Finnish dock workers’ strike halts cargo transports after labor talks break down

Finnish dock workers begin strike halting cargo

HELSINKI — Dock workers stopped handling cargo at Finnish ports on Thursday after labor contract negotiations broke down, leading to the closing of most of the country’s foreign trade.

The strike began at 6 a.m. (0400 GMT) after talks between unions and employers’ organizations failed. National Conciliator Esa Lonka, whose mediation proposal was rejected by the Transport Workers Union, said no new negotiations were planned.

Prime Minister Matti Vanhanen said he feared the long-term effects of the strike in the highly export dependent economy, adding that it is costing the country more than euro100 million ($137 million) daily in lost earnings.

“This is a very serious situation. Our national economy is in recession and we need to participate in the budding global economic recovery,” Vanhanen said. “We didn’t really need this homemade setback. We have enough problems as it is.”

The Confederation of Finnish Industries bemoaned the strike with harsh words.

“The stevedore strike comes at the worst possible time. In this situation, when many export companies are struggling to exist, a small key group is prepared to halt economic recovery,” federation chairman Sakari Tamminen said.

The world’s largest magazine paper maker UPM-Kymmene Corp. said it closed one magazine paper plant in Finland on Thursday and would close more mills within a few days if the strike continues.

Also, Finnish-Swedish forest products company Stora Enso Oyj said it expects to begin shutting down some of its Finnish mills because of the strike.

Both companies estimate they will lose some euro3 million a day as pulp and paper exports dwindle.

The union called the strike after months of talks failed to find a solution in a labor dispute that hinges mainly on compensation for laid off personnel. The union also wants better working conditions and pay raises for some 3,500 union members who are stevedores.

Last month, the government ordered a postponement of the strike, originally called by the union to begin on Feb. 19.

The Finnish economy shrank in the fourth quarter of last year, as the global downturn continued to hit the country. Finland’s gross domestic product was down 5.1 percent compared to the same period in 2008. In the full year, the Finnish economy shrank 7.6 percent compared to 2008, its largest drop since 1918.