Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Factbox-How Finnish strikes over labour reforms are affecting companies

Published 03/28/2024, 11:02 AM
Updated 03/28/2024, 11:06 AM
© Reuters. A Finnair plane is seen on the tarmac at Helsinki-Vantaa airport, Vantaa, Finland, February 9, 2024. REUTERS/Tom Little/File Photo

(Reuters) - A strike by labour unions that has disrupted ports and the rail system is having an impact on Finland's exports and imports.

The strike, which began on March 11 and follows others held since October, is in protest over government plans to reform the labour market and reduce social welfare, changes that the government says are necessary.

Finland's industrial, logistics and electrical workers on March 27 agreed to extend the strikes to a fourth week after a previous one-week extension until March 31.

Here is how some companies have been affected:

BOLIDEN

The Swedish metals maker estimated on March 22 the strikes' negative impact on its first-quarter operating profit at around 500 million crowns ($46.89 million).

FINNAIR

The national carrier expects disruptions to its refuelling services and planned measures to allow refuelling at stations outside Finland. It saw no impact on flights as of March 22.

KEMPOWER

The maker of charging solutions for electric vehicles cut its first-quarter guidance on March 22, citing delays to deliveries. It saw first-quarter revenue significantly below the year-ago number of 55.8 million euros ($60.33 million), and operative earnings to be "significantly negative", it said in a statement.

METSA BOARD

The forestry group Metsa shut down five mills, including Metsa Board's Joutseno mill, and said it would assess wage payments for employees involved.

Metsa also said it expected eight further mills to become idle as of March 25 because of the strike.

NESTE

The oil and biofuels group could stop production at its Porvoo oil refinery as the strike cuts off raw material transportation and leads to filling up of storage facilities.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Neste said on March 26 that fuel was no longer available at some of its stations and the situation would get worse as the strike continues.

NOKIAN TYRES

The tire maker said on March 22 it would temporarily lay off 350 employees at its car tire factory in Nokia (HE:NOKIA) for 90 days due to the strikes. Inventories were filling up as the strikes hampered deliveries, it said.

OUTOKUMPU

Stainless steelmaker Outokumpu on March 21 lowered its first-quarter core profit guidance for the second time.

It estimates the combined negative impact of the three-week long strike on adjusted EBITDA at about 65 million euros, a spokesperson said.

SSAB

The Swedish steelmaker estimated on March 28 that the strike would shave off about 350 million crowns from SSAB Europe's first-quarter operating result.

If the strikes continue into the second quarter, they will weaken the operating result by an estimated 125 million crowns each week, it said in a statement.

STORA ENSO

The forestry firm halted production at its Varkaus packaging board mill and suspended wages for affected employees.

Stora Enso (OTC:SEOAY) said on March 22 it would start shutting down its Imatra and Oulu mills on March 24 and expected them to be fully closed by the start of Easter.

UPM

Production has been halted at UPM's paper mills in Kymi, Rauma and Jämsänkoski and two pulp mills. However, the Jämsänkoski printing paper machine is due to restart on March 25 for five days, a spokesperson said.

The forestry company is suspending pay for employees involved.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

VR GROUP

The state-owned railway, which normally runs 250 freight trains per day, said the strike has brought freight traffic to a standstill until March 31. Passenger transport will not be affected.

($1 = 0.9250 euros)

($1 = 10.6633 Swedish crowns)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.