Industrial troubles at Ssangyong are continuing with little sign of immediate resolution.
Some 3,000 employees who survived the layoffs gathered outside the idle plant in Pyeongtaek yesterday in an attempt to break the sit-in strike by workers that has stopped production for more than three weeks.
However, the Korea Herald reported that plans to attempt to move in without police involvement were aborted as the management judged the situation to be too volatile and potentially dangerous.
“There are many outside elements (protestors from outside Ssangyong) inside the Pyeongtaek plant, so our employees can’t go in, and it would be meaningless if they did,” head of the Pyeongtaek plant Kwak Sang-chul told reporters outside the plant.
The plant is occupied by a group of about 1,000 people comprised of Ssangyong union members and their families, students and members of the umbrella group Korean Confederation of Trade Unions.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUnion workers began partial strikes in April in protest against the bankrupt company’s plans to reduce staff by more than 2,500 and, on 22 May, stepped up the strikes and began an illegal occupation of the Pyeongtaek plant, bringing production to a standstill.
The Korea Herald reported that although Ssangyong’s management have asked the authorities to step in, the police are said to be putting off taking direct action in consideration of “public sentiment” and hoping that the situation is resolved without their involvement.
While the authorities wait and the management fail to resolve the situation, Ssangyong’s troubles are deepening, the newspaper said.
According to Ssangyong, the damages in terms of lost revenues sustained by the company up until Monday are estimated at 128 billion won ($101 million).
The company estimates that damages will run up to 199 billion won if the situation drags on until the end of the month, the paper added.