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UPM's Jämsänkoski Mill Avoids Temporary Layoffs
Helsinki, Finland, 22 February 2008 – Employee negotiations begun in December 2007 at UPM's Jämsänkoski paper mill have provided acceptable alternatives to temporary layoffs at the mill.

On 17 December, UPM estimated that temporary layoffs affecting approximately 70 people could be possible at the Jämsänkoski mill to reduce label paper production by a temporary shutdown of up to three months. The negotiations have now been finalized, with the conclusion that temporary layoffs can be avoided.

Options found for temporary layoffs of the paper machine 4, to improve the cost and operational efficiency of the mill, include a change to four-shift operations, flexible substitution system during holidays, and the locally agreed reduction of 16 jobs. The reduction of label paper production will be realized as planned.

The amount of employees will be reduced through attrition and voluntary retirement, mainly during the current agreement period.

"Our aim was to conduct proper negotiations with employees. I am pleased that we, together with the employee groups, were able to find cost efficient alternatives. This way we can avoid temporary layoffs and develop flexible ways to operate in order to ensure the future the Jämsänkoski mill," said Erkki Puru, general manager

UPM's Jämsänkoski paper mill manufactures magazine, label, and packacking papers. The mill employs 740 people.

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