Co-determination negotiations concerning restructuring of foresty work concluded

(UPM, Helsinki, November 10, 2006) – The co-determination negotiations concerning the restructuring of forestry work in Finland which started in September have now been concluded. UPM's proposal included possible outsourcing of manual forestry work and ending manual forestry work under UPM's employment contract, as well as the related impacts on employees.

Restructuring of forestry work is a significant and complex issue from both the employer's and employees' point of view. The proposal aims to develop forestry work and its profitability, as well as improving the employment of forestry workers round-the-year. During negotiations employee representatives have made their own proposal to develop the work.

UPM wants to continue to discuss the details of their proposal with the forestry workers. The company will also investigate in more detail the potential of different companies to offer cost-competitive and high quality forestry services as well as employing UPM's forestry workers. The company will make a final decision after having considered carefully all the aspects and will announce the details in due course.

"As an important forest owner and as a company managing considerable areas of private forests UPM has to plan and develop its operations at minimum 5 – 10 years term. We need professional personnel to take care of manual forestry work in the future even though part of the work can be mechanised", emphasises Mr Sixten Sunabacka, Vice President, Forestry and Wood Sourcing in Finland. "To develop manual forestry work, to improve the attractiveness of the work and to improve cost-efficiency, new ways to operate are needed. We want to actively promote this development."

For further information please contact:
Mr Sixten Sunabacka, Vice President, UPM, Forestry and Wood Supply in Finland, tel. +358 204 16 3800
Mr Markku Houni, Administration Director, UPM, Forestry and Wood Supply in Finland, tel. +358 204 16 3867