Ensuring decent working conditions and fair employment for all employees is our primary target and an integral part of the company values and work on developing our social responsibility. We are committed to promoting decent work and fair employment conditions in our own operations and across our value chain.
Working conditions and employment
Decent and fair employment conditions
Our Code of Conduct forms the basis for respecting and promoting decent and fair working conditions at UPM. It is complemented by a more comprehensive global Human Resources Rules that defines in more detail the principles of working conditions, labor practices and decent work as described by the International Labor Organization (ILO) what UPM is committed to and what is expected of our employees. Wherever we operate, we comply with international, national and local laws and regulations, and respect international agreements concerning human and labour rights and freedom of association.
All UPM employees have the right to have written and understandable information specifying their terms of employment. UPM complies with legislation and respective collective bargaining agreements regarding all their regulations, including regulations concerning working hours. Overtime is voluntary and compensated to employees according to legislation and collective bargaining agreements. We take work/life balance seriously and strive to ensure that our workplace practices are developed so that where possible, attention can be paid to individual needs to combine work and family.
Active dialogue with labour unions
We conduct both formal and informal consultations with unions and actively promote employee participation and consultation, organised in accordance with international and national rules and regulations. To encourage an open, international dialogue, between corporate management and UPM employee representatives, UPM has a co-operative body, the UPM European Forum, which focuses on issues related to changes within the company and the business environment in general. The forum organises regular meetings for employee representatives from business units operating in Europe. To promote employee participation, consultation and dialogue between UPM Business Area and country management, and employee representatives and employees on national level, there are co-operative bodies in UPM countries, operating based on country-specific rules, regulations and UPM practices.
In the context of labour unions, freedom of association means that employees have the freedom to form/or join labour unions and to bargain collectively. We do not collect information or report on our employees’ union membership at a global level due to differences in national legislation in our various operational countries. The percentage of employees covered by collective agreement mechanisms was 52% in 2023.
Terms of employment for employees not covered by the CLAs is determined by the company based on company practice taking into account principal customary practices applicable in each operating country.
Harmonising the terms of employment for salaried employees in Finland
Terms of employment for salaried and senior salaried personnel groups working in expert and manager roles have been arranged based on common criteria such as labour law, common practices in UPM Finland and individual employment contracts. In addition, terms of employment include business specificlly defined compensation for shift work.
Terms of employment were harmonised after Finnish Forest Industries Federation announced late 2020 its reform of the structural development of collective bargaining agreements after the terms of bargaining agreements have ended. UPM continues to respect the employees’ freedom of association going forward, and regular dialogue and cooperation with employees remain going forward.
