Finnish labor unrest costs Boliden

A strike by thousands of Finnish workers in export, import, and logistics is expected to begin on Monday. This could cost Boliden hundreds of millions of Swedish kronor.

Boliden has applied for an exploration permit to determine which metals are to be found around Lillträsket in Luleå municipality.

Boliden has applied for an exploration permit to determine which metals are to be found around Lillträsket in Luleå municipality.

Foto: TT

Boliden2024-03-11 12:10

A 14-day political strike involving several Finnish trade unions and roughly 7,000 workers is set to begin on Monday. The strike, targeting the government, stems from dissatisfaction with labor reforms, restrictions on the right to strike, and social security cuts.

Boliden, a Skellefteå municipality-based mining company, will be significantly impacted by the strike due to disruptions at Finnish ports and railways. 

The company estimates a negative impact of 300 million kronor on their operating profit for the first quarter of 2024 if the strike lasts for the planned 14 days.

– Both our production and deliveries to customers will be affected, Boliden's communications director, Klas Nilsson, told Di TV

– Lower production accounts for roughly 100 million kronor, while delayed deliveries are estimated at 200 million kronor.

A press release further states that the first quarter will see a negative cash flow impact of 500 million kronor, primarily due to a temporary increase in working capital. 

However, Boliden expects to recover 200 million kronor of this loss during the second quarter.