In a recent ruling, Finland's Labour Court determined that Stora Enso, a global leader in renewable materials, violated the collective labour agreement when it dismissed employees at its Veitsiluoto mill in 2021.
The court mandated the company to pay nearly €800,000 in compensation, including €710,000 to eight dismissed employee representatives.
The case involved the dismissal of 11 shop stewards, with the court finding that Stora Enso failed to provide alternative work and training opportunities. Additionally, the Finnish Forest Industries Federation was ordered to pay €6,000 to the Paper Workers' Union. The Federation shares responsibility with Stora Enso for covering legal costs, bringing the total compensation to nearly €800,000.
This decision underscores the importance of adhering to collective labour agreements and ensuring fair treatment of employees, particularly those in representative roles. The ruling serves as a significant reminder to corporations about their obligations under labor laws and the potential financial and reputational consequences of non-compliance.
Stora Enso has yet to comment publicly on the court's decision. The company is expected to review the ruling and consider its next steps in response to the court's findings.
The case highlights ongoing tensions in the Finnish labor market, where disputes over employment practices and labor rights continue to surface. It also reflects broader challenges faced by multinational corporations in balancing operational decisions with legal and ethical responsibilities to their workforce.
As the situation develops, stakeholders are closely monitoring Stora Enso's actions and the broader implications for labor relations within the industry.
