The Swedish paper workers union Svenska Pappers and the Forest Industry Employers' Association Skogsindustrierna reached "excellent union-friendly terms" on the collective agreement.

The parties agreed a 3.3% wage increase over 22 months, with the first increase to be given on 1 May 2010 ahead of the 1 June date that staff sought, and the second will follow on 1 April 2011.

Pappers also won an additional month of company paid maternity/paternity leave for its members.

A statement from the International Federation of Chemical, Energy, Mine and General Workers' Unions, said: "Pappers is very pleased with the settlement, as well it should be.

"The union ... deserves a solid congratulatory note from all for holding firm against a business-backed employers' group that was attempting to use the financial crisis to short-change workers."

It added that the terms of the settlement reflect "the very best industrial package" achieved in and beyond Sweden of late.

It ends a strike at six mills: SCA Kraftliner Munksund, Holmen Iggesund, Stora Enso Skoghall Mill, Korsnäs Gävle, Södra Cell Värö and Billerud Skärblacka.

The first stage of industrial action began after unions failed to reach a consensus over an outstanding labour agreement.

Jonas Nordlund, Stora Enso's Swedish director of communications, said: "Now our highest priority is to normalise the production at Skoghall Mill again and continue to serve our customers.

"Stora Enso Skoghall Mill has now started production again, and Fors Mill, which was preparing for the strike, never needed to stop the whole production."

He said that any losses will be compensated by the Confederation of Swedish Enterprise (Svenskt Näringsliv).

"However, of course there is a risk that the strike has damaged our customers' confidence in us," he added.