Uh oh......it looks like Ssangyong is on a verge of being liquidated since the talks between management and union broke down over job cuts, the unions on strike over opposition over job cuts have occupied the plant for over 70 days costing Ssangyong big losses on productions. Keep on eye on 5th August as this will be d-day whether ssangyong will resume nomal business or push for liquidation ahead of September 15 revival plans to be presented in court. Looks like the damage has been done


http://english.yonhapnews.co.kr/nati...02200320F.HTML


(3rd LD) Embattled Ssangyong says union talks have collapsed


PYEONGTAEK, South Korea, Aug. 2 (Yonhap) -- The management of Ssangyong Motor Co. said Sunday negotiations with its labor union have collapsed, raising tension at the embattled automaker as it struggles to stave off bankruptcy.

Company officials said the talks fell through over differences on how many workers will be retained. The announcement was made early Sunday after 27 rounds of negotiations that began last week.

"Barring any change on the part of the union there will be no further negotiations," Park Young-***, the senior manager at Ssangyong said in an emergency press briefing, adding the standoff may have to be settled in court.

The court-appointed executive said Ssangyong has done all it could to deal with the illegal strike, adding that if no progress is made the carmaker may be forced to liquidate.

Park said the 4,600 employees who have been kept on the payroll will attempt to come to work at the carmarker's sole plant here, 70km south of Seoul, which has been occupied by the union. He acknowledged that this could lead to a clash.

Others managers said the talks fell through after the labor union made clear it cannot accept a single layoff among its members. They claimed the union used the talks to prolong its more than two-month occupation of the Ssangyong plant.

The company had earlier offered to "save" some of the 974 workers that it originally wanted to dismiss by allowing 300 of them to go on unpaid leave and by reassigning 100 to sales jobs. The company argued this would allow 40 percent of those that would have been let go to stay on.

The management said an understanding must be reached soon and that the standoff has darkened prospects for Ssangyong's survival, costing nearly 300 billion won (US$244 million) or 13,907 vehicles worth of lost production.

Union leaders countered that it was the management who was obstructing progress by continuing to push for a large-scale cut in the workforce. They said all the workers could be saved by taking unpaid leave or through work reassignments.

"The union deeply regrets the unilateral announcement by the management earlier in the day calling off all talks," the union said in a statement. It accused court-appointed managers of trying to appease the government, which is trying to push for the restructuring of the auto industry as a whole.

The union also gave the company an ultimatum outlining its demand that all workers be maintained and its willingness to forgo wage hikes and other benefits this year to help the company. It asked the company to reply by 10 a.m. Monday, although the management has said there will be no further talks.

Ssangyong, the smallest of South Korea's five automakers, is still owned by China's Shanghai Automotive Industry Corp. But the Chinese parent lost management control after Ssangyong entered court bankruptcy protection and has declined to take measures to help the carmaker.

The company submitted to the court and its creditors a turnaround plan that slashes 36 percent, or 2,646, of its workers. If it fails to deliver on the plan by Sept. 15, the carmaker faces liquidation.

Some 1,670 workers have left the company through voluntary retirement plans. The remaining 900-plus employees have barricaded themselves inside a paint shop at Pyeongtaek plant that is stocked with flammable materials. Police tried unsuccessfully to push them out while being pelted with nuts and bolts fired by the unionists from slingshots.

The government has said it is prepared for the worst-case scenario, and is taking measures to reduce a ripple effect on auto-parts suppliers triggered by troubles at Ssangyong.

"The inability to reach a compromise has cast a dark cloud on the future of the carmaker," said one official, who declined to be identified. "Every effort will be made to help parts suppliers secure new sales outlets and replace losses caused by the Ssangyong strike."

He said the government can offer overseas marketing support and help suppliers win domestic contracts.

Market watchers also said that if no headway is made, Ssangyong may have to close its doors.

That would have little effect on the domestic car market as Ssangyong's market share stands at just 2-3 percent, they said, although it could send shockwaves through the overall economy as it struggles to make a comeback.

If the company collapses, 7,000 Ssangyong employees -- excluding those cut by the turnaround plan -- and 4,000 workers from the 55 parts makers who had deals with the carmaker would lose their jobs, according to experts.

The number of job losses caused both directly and indirectly could top 20,000, they say. The Pyeongtaek economy, which has been heavily dependent on Ssangyong, would also take a major hit.

"The total number of people that could be hurt one way or another could even surpass 1.08 million," one industry observer said, adding the collapse could have a negative impact on the image of South Korean cars abroad.

Parts suppliers and other companies that have dealings with Ssangyong may not be able to recover the 267 billion worth of credit they hold even if the company is sold off, he said. The company already owes 288 billion in unpaid wages and in debt to the state-run Korea Development Bank, which gets priority in receiving payment.

This could lead parts makers to file civil suits demanding compensation from union workers for damages incurred by their protracted protest.

yonngong*yna.co.kr
(END)



Ssangyong occupation news and pictures over the past month:

Main page

http://libcom.org/tags/ssangyong-occupation


Occupation day 4

http://libcom.org/news/ssangyong-occ...-2009-24072009

day 5

http://libcom.org/news/ssangyong-occ...-2009-26072009


day 8

http://libcom.org/news/ssangyong-occ...-2009-28072009


day 10

http://libcom.org/news/ssangyong-occ...-2009-29072009


day 11

http://libcom.org/news/ssangyong-occ...-2009-30072009