According to a release distributed by Rautaruukki Corporation today, around 400 members of the Union of Salaried Employees TU started a strike at 6am on 1 December 2009, Thursday after negotiations between the Federation of Finnish Technology Industries and TU foundered. The week-long strike will end on 8 December at 6 am and affects Ruukki's operations based at the Raahe Works.
The statement indicates that the strike will stop hot-rolling production and the cutting lines at the Raahe Steel Works. Consequently, the manufacture of these products at the works and delivery to customers and the company's own processing functions will be at a standstill at the start of the week. The announcement states that there is also disruption in order processing.
Raahe provides rolled and partly processed steel products for further processing at the company's Hämeenlinna Works, tube mills and steel service centres. Around one third of deliveries from Raahe are direct customer deliveries.
The strike will mostly affect Ruukki Metals, which will try to use its Nordic service centre network and stocks to safeguard customer deliveries. The strike will not significantly affect the operations of Ruukki Engineering and Ruukki Construction divisions or Ruukki's units outside Finland.
It is estimated the strike will weaken the consolidated operating profit for the fourth quarter by around €6 million.