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UPM to pay compensation for unlawful termination of employment

Jan 13 2010  UPM Raflatac has been ordered to pay compensation to nine workers for an unlawful termination of employment. The total amount, determined by the Turku Court of Appeal, is approximately 250,000 Euros.

The employment of the nine workers was terminated at UPM Raflatac's Tampere mill in the beginning of 2007 for financial and production related reasons. At the same time the company employed new personnel in its Jyväskylä mill. None of the workers made redundant was offered work in Jyväskylä, nor were the workers' representatives informed during the cooperation negotiations.The length of employment of the employees made redundant varied from ten to 34 years.The Turkr Court of Appeal took into account the restricted nature of the assessment of workers' professional skills and competence, which was used as the basis for the company to employ new workers, who had less working experience, at the RFID factory in Jyväskylä.In addition, the court refused UPM Raflatac’s claim for compensation of legal costs. UPM Raflatac was ordered to pay to the Finnish paper workers' union, Paperiliitto, almost 20,000 Euros in legal costs.

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