Image: helsinkitimes
The Finnish labour strike, which commenced on March 11, has been temporarily halted, providing some relief to the affected industries. The SAK trade union association announced the suspension on April 4, following weeks of disruptions to the country’s ports and rail system, severely impacting imports and exports.
Companies Count Losses Amidst Strike
The strike’s ramifications have been deeply felt by various companies across different sectors. Finnair, Finland’s national carrier, suffered significant revenue and earnings hits, with approximately 550 flights canceled and refuelling operations reorganized due to fuel delivery suspensions. Interim CEO Jaakko Schildt lamented substantial financial damages, especially during the fuel strike period, estimating losses in the millions of euros per day.
Kemira, a chemicals company, reported limited impact on its first-quarter results but noted disruptions affecting Finnish pulp and paper customers, leading to production curtailments and suspended payments for some employees. Similarly, Neste, an oil and biofuels group, saw negative impacts on its first-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA), attributing the setback to halted raw material transportation and storage facility overflows.
Industries Grapple with Production Halts
The strike forced several companies to halt production, exacerbating financial strains. Stora Enso, a forestry firm, estimated losses of 25 million euros due to production halts at its Finnish mills. The steel industry also faced significant setbacks, with Outokumpu and SSAB Europe reporting multimillion-euro losses in adjusted EBITDA due to production disruptions and increased costs associated with the strike.
Logistics and Freight Sector Navigates Challenges
The strike’s ripple effects extended to the logistics and freight sector, impacting net sales and operational profits for firms like VR Group, the state-owned railway operator. Freight traffic came to a standstill, disrupting the normal operation of 250 freight trains per day until April 7.
Source: reuters
