Ssangyong said Friday that operations at its two domestic plants have been halted as union workers protested against the company’s plans to layoff thousands as part of a viability plan.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Yonhap news agency reported that union workers said they would wage a ‘do-or-die battle’ to oppose job cuts.
It was unclear how long the lines were to be suspended, but the strike action at this stage is likely to be partial or temporary. A full-scale strike would raise the stakes for the under administration company.
Bankrupt Ssangyong has said it will cut 2,646 jobs, or 36% of its total workforce and get 250 billion won in new loans by offering its manufacturing facilities as collateral.
On Wednesday, a local bankruptcy court said Ssangyong is worth saving, rather than liquidating, but warned it could still liquidate the ailing carmaker if it fails to make the job cuts as promised.
“As the management and the government follow through the restructuring plans, only a do-or-die battle is in our hands,” said Han Sang-kyun, leader of the Ssangyong Motor union.
“It was confirmed that they want a fight. So, our answer is to fight. Let’s prepare for all-out, bitter battles,” Han said.
Ssangyong said it has sought permission from local labour authorities on Friday to slash 2,400 workers. About 240 workers have already applied for voluntary retirement, the company said.
Under the South Korean labour laws, an employer must get government approval for a layoff 30 days before it finally fires employees, Yonhap said.
Any full-scale strike by Ssangyong workers would complicate the company’s efforts for survival.
On May 22, the Seoul Central District Court will hold its first meeting with creditors and shareholders of Ssangyong to discuss the company’s restructuring plan, Yonhap reported.
A court official said, “Rescue proceedings will be scrapped if conditions for restructuring and new loans aren’t met.”
