The Paperworkers' Union and the forest products firm Metsä have announced a deal on a company-specific collective agreement.

Union president Petri Vanhala said in a press release on Saturday that he was satisfied with both "the spirit and the outcome" of the talks.

"Negotiations between the Paperworkers' Union and Metsä Group lasted quite a long time, yet they were conducted in a constructive spirit throughout each stage. It will be good to continue cooperating in this way in the future," Vanhala said.

The terms of the deal are still to be ratified by the boards of both the union and the company.

UPM postpones talks until Friday

The current industry-wide collective agreement for the paper sector expires at the end of this year, and new agreements are currently being hammered out on a company-by-company basis for the first time.

Traditionally the exporting sectors signal the level of pay rises to be expected in the rest of the economy.

The Paperworkers' Union has already reached an agreement with Stora Enso, a deal which will be valid from the beginning of January until the end of April 2024.

However, negotiations between the union and UPM have stalled as the union wants to reach a company-specific agreement while the company is looking to negotiate on a business-specific level.

UPM has five business areas in which the union is a contractual partner. Talks were to continue on Sunday.

However, Vanhala said that UPM had announced in an email that negotiations would be postponed until next Friday. Vanhala said he did not know the reason for the delay.

12.12: Updated with UPM delay and other details.