Brussels, Belgium
15-16 November 2005
ICEM WORLD
CONFERENCE FOR THE
PULP AND PAPER
INDUSTRY
“Globalisation in the
Pulp & Paper Industry”
Paper and Board Production
by Region, 2004
(2003-2004 + 5.5%)
TOTAL: ~360 Mt
Rest of the World,
25.6Mt, 7.1%,
(+7.6%)
North America,
103.9Mt, 28.9%,
(+3.6%)
Europe, 109.3Mt,
30.4% (+4.75%)
Asia, 121Mt,
33.6%, (+8.3%)
Paper and Board Production
by Product, 2004
(2003-2004 + 5.5%)
TOTAL: ~360 Mt
Tissue/Other
Paper, 23.9/29Mt,
6.7/8.1%, (+6.4/-)
Newsprint,
39.2Mt, 10.9%,
(+4.4%)
Printing/Writing,
111.4Mt, 30.9%,
(+6.9%)
Containerboard
and Board, 156Mt,
43.4%, (+6.4%)
Newsprint
Production 2004
(2003-2004 + 4.4%)
TOTAL: ~39.2 Mt
Rest of the World,
2.1Mt, 5.3%,
(+4.4%)
Asia, 10.4Mt,
26.5%, (+13.7%)
Europe, 13.4Mt,
34.2%, (+5.4%)
North America,
13.3Mt, 34%,
(less 2.6%)
Printing/Writing
Production 2004
(2003-2004 + 6.9%)
TOTAL: 111.4 Mt
Rest of the World,
1.5Mt, 1.4%,
(+10.3%)
Asia, 36.3Mt,
32.5%, (+7%)
North America,
29.7Mt, 26.7%,
(+6.2%)
Latin America,
4.0Mt, 3.7%,
(+4.3%)
Europe, 39.8Mt,
35.7%, (+7.4%)
Packaging Paper and Board
Production 2004
(2003-2004 + 5.9%)
TOTAL: 176.3 Mt
Rest of the World,
4.6Mt, 2.6%, (+8%)
Asia, 63.1Mt,
35.8%, (+8.9%)
Europe, 45.1Mt,
25.6%, (+3%)
North America,
53.6Mt, 30.4%
(+4.3%)
Latin America,
9.8Mt, 5.5%,
(+8.4%)
World Pulp Production
By Region 2004
(2003-2004 + 3.1%)
TOTAL: 188.5 Mt
Asia, 37Mt, 19.7%,
(+11%)
Australasia, 3Mt,
1.6%, (+12%)
North America,
80Mt, 42.4%,
(+2.7%)
Africa, 2.9Mt,
1.5%, (-3.4%)
Europe, 50.6Mt,
26.8%, (+3.7%)
Latin America,
15Mt, 8%, (+8.3%)
Mergers and Acquisitions
Gradual decline in volume of M&A
transactions since the turn of the
century as major companies refocus
their attention from securing larger
market shares to debt management,
profitability, and attractiveness to
investors.
Some Major Transactions
in 2002-2005
 Mead and Westvaco merger (2002) followed by
divestment of paper business to NewPage Co. for $2.3
billion in 2005 to focus on packaging and emerging
markets.
 Willamette takeover by Weyerhaeuser (2002) followed
by massive mill closures, divestment of timberland and
other assets to reduce debt and achieve “synergy”.
 International Paper’s sale of its 50.5% share in Carter
Holt Harvey to private investment fund in 2005 as part
of restructuring programme to focus on uncoated
papers and packaging and divest virtually everything
else.
Some Major Transactions
in 2002-2005 (cont.)
 Announced merger of Smurfit Packaging
Corp. and Kappa packaging in 2005.
 Announced acquisition of Georgia-Pacific
by Koch Industries for $13.2 billion in cash
and $7.8 billion in assumed debt in 2005 –
an unprecedented blockbuster deal in the
sector.
World Top 10 Producers
in Pulp and Paper Industry
Production (1,000 tonnes)
1. International Paper (USA)
16,236
2. Stora Enso (Finland)
15.311
3. Weyerhaeuser (USA)
11,439
4. UPM (Finland)
10,886
5. Georgia-Pacific (USA)
10,304
6. Smurfit-Stone Container Corporation (USA)
8. 239
7. Oji Paper (Japan)
8, 081
8. Nippon Paper Group (Japan)
7,898
9. SCA (Sweden)
6,491
10. MeadWestvaco (USA)
5,900
TOP 10 COMPANIES
generate
28% of the global
industry output
Delivering Attractive Bottom Lines
Focus on Core Businesses
Rigorous Restructuring and Cost
Reduction
Focus on Emerging Markets for
Future Expansion
Labour Disputes
Carter Holt Harvey Kinleith Mill, New Zealand
Strike: 8 March 2003 to 3 June 2003.
Who: 270 Production Workers, represented by ICEM Affiliate
Engineering, Printing & Manufacturing Union (EPMU) at
CHH’s pulp and paper mill in Tokoroa, NZ.
Result: Workers, after being victimized by management
contracting out the entire maintenance unit of this
pulp/paper mill a year earlier, struck over safety,
specifically elimination of trained workers as fire brigade
professionals, pay and other detrimental work-rule
changes. The 82-day strike preserved the fire brigade, pay
increases of 4% and 3% for 2 years, and workers backed
the company off a proposed promotions process based on
its own skills assessment.
UPM Kymmene’s Miramichi Pulp/Paper Mill,
New Brunswick, Canada
Strike: 16 December 2004 to 13 August 2005.
Who: 790 Members of ICEM Affiliate Communications,
Energy, Paperworkers (CEP) Union of Canada.
Result: After announcing that it would close a kraft pulp
mill at this site in Fall 2004 costing 400 workers their
jobs, the Finnish-based company refused to honour the
paper sector pattern agreement for Eastern Canada set
between CEP and Abitibi-Consolidated. The strike was
settled after the CEP Local 689 played an important
solidarity role in the Finnish paper sector lockout of
May-June 2005.
Turkish Cellulose and Paper Factories
(SEKA), Izmit
Plant Occupation and Strike: 20 January 2005 to 10
March 2005-11-14.
Who: 700 Union Members and Family Members of Turkish
ICEM affiliate Sululoz-Is.
Result: After occupying their paper mill in Izmit in the face of
Turkish police attempting to dislodge them, union
members and their families won a decision against the
Turkish government’s plan to privatise their paper mill.
The occupation strike produced an agreement
guaranteeing jobs for all 700 workers by transferring their
work status from SEKA to the municipality of Izmit, which
will seek to keep the mill open or provide jobs to the
workers at similar wage levels.
Finnish Paper Lockout, 6 Paper Companies, 54
Paper Mills
Lockout: 18 May 2005 to 1 July 2005.
Who: 25,000 paperworkers in Finland, members of ICEM affiliate
Paperiliitto.
Result: After engaging in industrial action from late March until
mid-May due to the paper industry umbrella organization in
Finland refusing to comply with the national incomes policy
agreement of Finland, five major global companies (Stora Enso,
UPM Kymmene, M-real, Metsa Tissue, Myllykoski and
Ahlstrom) locked out workers over several work issues. Chief
among issues was the companies’ demand to the unlimited
right to outsource work, removal of mandated Christmas and
mid-summer shutdown days, and the companies’ right to
impose 12-hour workdays. A compromise agreement was
reached before Finland’s Prime Minister in late June, giving the
union a satisfactory result to the contracting-out issue.
ArjoWiggins Decision to Close Carbonless
Paper Mill, Corpach, Fort William, Scotland
Action: Unions seek buyer for 39-year old mill.
Who: ICEM UK Affiliate Amicus enters into 90day consultation period in July 2005 in order
to keep the 150-worker Corpach Mill
operating.
Result: Amicus and two other unions
representing workers at mill embark on a
community awareness programme to keep
mill in operation.
Norske Skog’s Decision to Close
Book/Newsprint mill, Skien, Norway
Protest: Summer 2005, culminating in early
September.
Who: Jobs of 380 workers at stake who are
members of ICEM Norwegian affiliate
Fellesforbundet.
Result: Even though buyers were lined up to
buy the Norske Skog Union mill, company
insisted on shuttering mill in order to remove
capacity of this grade of paper from markets.
Norwegian agency allows company to close
mill, resulting in appeal from Fellerforbundet.
Stora Enso’s Management Demands at
Newsprint/Publications Papers mill, Gent,
Belgium
Strike: 11-day strike from 28 October to 8 November.
Who: 330 workers represented by ICEM Belgian affiliate
ABBV-FGTB, and 2 other unions.
Result: Workers seek a liveable pay increase, but harsh
procedures by management crushes strike. Stora Enso
managers at the Langerbrugge Mill resort to bargaining
by ultimatum rather than good-faith social dialogue with
unions. Workers vote by 56% to continue strike on 8
November, but need at least a 60% vote for walkout to
continue. Result is management now has 330 angry
and victimized employees working paper machines and
other equipment.
ABB Power Technologies, Figeholm Mill,
Oskarshamn, Sweden
Union Action: Union brings company into a Swedish
labour court in order to strike and achieve sympathy
strikes at paperboard mill.
Who: ICEM Affiliate Svenska Pappers and 130 workers.
Result: Labour Court, in a unanimous 7-0 decision, rules
that Union does have the right to strike ABB at
Figeholm mill and, in fact, sympathy strikes by
transport, electrical and construction unions are legal.
Court decision moves company to begin honest
dialogue after two years of refusing to match the social
standards already established in Sweden’s paper
sector.
ICEM Response to Globalisation
3rd ICEM Congress in Stavanger, 2003,
reinforced Strategy adopted at 2nd ICEM
Congress in Durban, 1999:
Local Problems International Solutions,
Through Solidarity
Global Framework Agreements
Now ICEM has 12 Agreements in all of its major
Sectors, including 2 in Pulp & Paper Industry.
2002 - ICEM and Fellesforbundet, its Norwegian
affiliate, signed GFA with Norske Skog, the
world’s largest producer of newsprint today.
2005 – ICEM, its Swedish affiliate Pappers and
SCA EWC signed a global agreement with SCA,
a global leader in tissue and packaging.
Global Trade Union Company Networks
2002 – ICEM set up a Global Trade Union
Network for International Paper, the
world’s largest paper and forest products
company. The Network is administrated
by USW.
2005 – ICEM set up a Global Trade Union
Network for Sappi, a global leader in
coated fine papers. The Network is
administrated by CEPPWAWU.
Global Campaign on
Contract and Agency Labour
2005 – ICEM launched a Global
Campaign on Contract and
Agency Labour after a
thorough study of the issue in
2004.