Ssangyong on brink of liquidation (feat. union strike occupation pictures)

[galaxy2012]

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

[galaxy2012]

The push for liquidation has began.


http://www.koreatimes.co.kr/www/news...117_49658.html



Creditors File for Ssangyong Liquidation

By Park Si-soo
Staff Reporter

Creditors filed for the liquidation of the troubled Ssangyong Motor with the Seoul Central District Court, Wednesday.

Cho Byung-woo, the spokesman for the creditors, said, ``With the standoff continuing, more than 1,900 part suppliers are exposed to bankruptcy. So we have no choice but to liquidate the company to recoup 300 billion won.'' But he added creditors will consider withdrawing the liquidation plan if protesters disperse on their own in the days to come.

The filing was made as police were unable to remove the occupants of a paint shop from the plant.

With a full-scale crackdown on occupants that began Tuesday morning, police were able to seize all but one building, which is packed with tons of flammable material.

The submission does not necessarily mean the country's smallest automaker will be liquidated in the foreseeable future since any ruling would not be legally binding.

The court still maintains the position that it will wait until Sept. 15, a deadline for management to submit a self-rescue plan to avoid liquidation.

``Any decision will be made after reviewing the self-rescue plan, a judge said.

But lawyers said the filing is meaningful as creditors have tentatively concluded that the firm has little chance of surviving, whatever the self-rescue plan may be.

A judge at the Seoul court said if creditors veto the plan, the court will accept the position of the lenders. Once the court rejects the program, Ssangyong will be given the option of submitting a more drastic downsizing plan for survival.

Bloody Clash

Police stormed into three buildings in the Ssangyong Motor plant, Wednesday, occupied by hundreds of fired workers for more than two months to protest a massive layoff.

At 9:50 a.m., about 20 special police units descended from a helicopter-borne steel container landed on the rooftop of a building and then stormed the buildings one by one.

Above the rooftop, police helicopters sprayed liquid tear gas at the laid-off workers who were using steel pipes, Molotov cocktails, cinder blocks and slingshots.

By noon, they seized all but one paint shop, the last building occupied by nearly 500 protesters, police said. About 4,000 police officers including the special squad took part in the operation.

But police are cautious about entering the last ``fortress'' where tons of flammable material are stored.

``It will take time for police to seize the building,'' National Police Agency chief Kang Hee-rak said. He hopes that union and management will reach a last-minute compromise.

Union spokesman Lee Chang-kun said that a police assault on the paint shop would be deadly. ``We will fight even at the risk of our lives,'' he said.

No Exit?

Regardless of the court's decision, the worst-case scenario of liquidating the firm is gaining momentum as neither the government nor lenders are willing to rescue Ssangyong.

Ssangyong management said once police retake the plant, it will resume production within 10 days at the latest and raise its production capacity to 5,500 vehicles a month as early as possible.

``Once production resumes, we will go to all lengths to revive the company,'' a Ssangyong executive said. ``We will first focus on selling vehicles in stock before seeking credit,'' he said.

But creditors are quite skeptical.

Ssangyong sustained $258 million in lost production during the strike. Also, many of its subcontractors have suspended their business, face bankruptcy or have already gone bankrupt.

[galaxy2012]

Unions decides to end strike and agree Ssangyong management offer.


http://www.koreatimes.co.kr/www/news...117_49728.html


Ssangyong’s Dismissed Workers End Strike

By Park Si-soo
Staff Reporter

A 77-day confrontation between laid-off workers and police at Ssangyong Motor plant came to an end Thursday after the protesters voluntarily ended their occupation of a paint shop at the factory.

The conflict ended after management announced that 48 percent of some 1,000 fired workers will be put on unpaid long-term leave instead.

The protesters walked out of the shop which they had occupied to protest the massive job cut plan.

Police officers checked the identifications of those moving out of the factory to sort out the masterminds of the violent strike. An officer at the scene said legal action would be taken against the leaders of the violence.

The accord came after several days of raids by special police units to disperse the fired workers who had been occupying the facility since late May to protest layoffs authorized by a court in February when Ssangyong entered bankruptcy protection.

Police plan to detain at least 21 union leaders and question around 100 protesters who had attacked officers by either firing steel ammunition from slingshots or throwing Molotov cocktails at them.

Some 30 protesters remained inside the plant to protest the accord, police said.

The union accepted a plan to save 48 percent of some 1,000 workers by giving unpaid long-term leave of absence - Ssangyong had previously offered this to 40 percent of them.

The laid-off workers occupied three buildings in the plant on May 22 after management shed 48 percent of the company's payroll.

About 1,670 workers have left the company through voluntary retirement plans.

Ssangyong received bankruptcy protection in exchange for implementing a turnaround plan calling for 36 percent of its workforce, or 2,646 employees, to be cut.

The standoff has darkened prospects for the carmaker's survival, costing nearly 316 billion won ($258.3 million) in lost production during the strike.

On Wednesday, several creditors of Ssangyong filed a petition with a court in Seoul to liquidate the strike-hit carmaker to recoup their money.

The creditors represented some 600 suppliers of Ssangyong, which owes them 276 billion won.

The petition is not legally binding, however, and a decision by the court is expected to come after Sept. 15, when Ssangyong is required to submit a restructuring plan.

China's Shanghai Automotive Industry Corp. retains 51 percent ownership over Ssangyong, though the parent lost management control after the carmaker entered bankruptcy protection.


other link:

http://libcom.org/news/ssangyong-occ...-2009-06082009

[Burai]

so pano na yung ssangyong na dealers dito?
kawawa naman siguro yung mga new buyers ng actyon (kung meron man) dahil na engganyo sila sa itsura, baka di nila alam yung current status ng ssangyong..

[pup2]

so pano na yung ssangyong na dealers dito?
kawawa naman siguro yung mga new buyers ng actyon (kung meron man) dahil na engganyo sila sa itsura, baka di nila alam yung current status ng ssangyong..

Sayang din to. Other than looking like cr*p, OK naman ang performance niya. Pasaway din kasi yung mga workers nila -- bancrupt na nanggugulo pa. Para namang may mapapala sila sa pag tiklop ng kumpanya.

If I'm not mistaken, this was a MAJOR reason why SAIC abandoned its investment. Pero kung mga ilang taon lang siguro may inventories pa sila ng parts and what not. Tsaka posible pa din naman magtuloy ang SAIC sa China ng Ssangyong-derived products -- I just hope suportahan ang lumang models.

[jeanpierre]

Magiging extinct pala Actyon namin pag nagkataon. Dapat pala maintain ng mabuti ito since it will serve like a remembrance ng Ssangyong pag totally madesolve ang company. Very unique pa naman design ng Actyon