Helsinki (News release) -- Conciliator Jukka Ahtela made a new settlement proposal in the labor agreement dispute between UPM Plywood and the Industrial Union on Monday. UPM Plywood accepted the proposal, but the union has today rejected it.

The settlement process will continue as soon as the National Conciliator considers it appropriate. The strikes by the Industrial Union will continue on UPM Plywood mills in Finland.

"We are very disappointed that the conciliator's new settlement proposal did not lead to a solution. Almost eight weeks of strikes on our mills are causing significant damage to our customers and have a long-term impact on our business and unfortunately also on the livelihood of employees participating the strikes," says Juhani Tenhunen, Vice President, Operations at UPM Plywood.

The strikes have halted production at UPM Plywood mills in Finland. UPM Plywood mills in Finland employ 1,000 people covered by the collective agreement with the Industrial Union. Production at UPM Plywood's Otepää mill in Estonia continues as normal.