European label associations very concerned about UPM's paper mill strike

The strike at UPM could have serious consequences for the value chain, the economy and the label companies if it continues, the industry believes.

"We urge all stakeholders (employers, trade unions and authorities) to consider the European macroeconomic implications of this conflict and to assess their social responsibility to the wider European community in resolving this conflict." the European self-adhesive industry association, Finat, and its nine national member organizations, including the French federation Unfea, are calling for a new approach to self-adhesives.

The dispute has been crippling UPM's Finnish paper mills since January 1 and has already caused serious delays in the supply chain, with delivery times now exceeding three months. Announced last Friday, the extension of the strike until March 12, 2022 could lead to a pan-European shutdown of supply chains within weeks, causing serious damage to the European economic recovery and reinforcing current inflationary trends.

If the strike continues, a chain reaction of paper shortages for liners and label faces will have a significant impact on the continuity of label and narrow web manufacturing, the delivery of self-adhesive labels to FMCG customers, including food and pharmaceuticals, the distribution of labeled products to stores and consumers, and ultimately the welfare of 500 million consumers in the wider Europe.

Intergraf, the European printing industry association, also pointed the finger in January, this Finnish strike which worsens the current situation already undermined by "current tensions in the supply chain" and soaring commodity prices.

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