UPM Plywood starts change negotiations at the Pellos, Savonlinna and Joensuu plywood mills. In total, the negotiations on possible layoffs and staff reductions will affect approximately 1 020 employees.
Long-term profitability challenges in softwood plywood production require efficiency measures, which is why UPM Plywood will start change negotiations on possible reductions of positions and outsourcing of operations at the UPM Pellos plywood mill due to financial and production-related reasons and restructuring of operations. The aim is to improve the productivity of the mills and safeguard the competitiveness in a challenging operating environment.
The negotiations will affect approximately 550 employees at Pellos. According to a preliminary estimate, the potential reductions will affect approximately 42 positions, divided by personnel group as follows: 38 employee positions and 4 senior salaried positions.
Also, the uncertain development of the birch plywood orders, poor predictability, and supply difficulties are further aggravating the situation. Uncertainty in demand requires preparation of temporary production stoppages at UPM Savonlinna and UPM Joensuu plywood mills. The employer is preparing to limit birch plywood production, if necessary, by laying off all staff groups in Savonlinna and Joensuu for a limited period of time. The potential layoffs would last for a maximum of 90 days and would take place during periods when the ability to provide work is temporarily reduced for the reasons mentioned above. The possible layoffs are expected to be completed by 31 December 2025.
The negotiations are estimated to affect around 270 persons in Savonlinna, of which 250 are employees and 20 are senior salaried positions, and around 200 in Joensuu, of which 185 are employees and 15 are senior salaried positions.
Decisions on possible redundancies and layoffs will be made once the change negotiations have been concluded.
Support services, such as occupational health care and Pihlajalinna’s Mielenhuoli line, are available for the personnel affected.
For further information please contact:
Juhani Tenhunen, Vice President, Operations, UPM Plywood, tel. +358 (0)20 415 8555