Thursday, April 16, 2009

SOUTH KOREA: Trouble brewing at Ssangyong

SOUTH KOREA: Trouble brewing at Ssangyong
14 April 2009 | Source: editorial team

The labour union at Ssangyong has, as expected, said that its members have overwhelmingly approved a proposed strike against mass layoffs.

The Ssangyong union said that 86.1% of 5,025 unionised workers (total workforce is 7,100) supported the strike call. A walkout would complicate Ssangyong's bid to turn itself around.

"As the strike action was endorsed, we will thwart the restructuring plan by all means," a union official told Yonhap.

The union will hold a press conference on Wednesday to announce details of the strike, the official said.

Ssangyong said last week it would axe 2,646 jobs, or 37 percent of its total workforce, to ensure creditors of its viability.

Next month a bankruptcy judge at the Seoul Central District Court will meet creditors of Ssangyong and its debt holders to decide on the viability of the company.

Commentary: It is unfortunate that between union workers and management a better product cannot be designed and produced to save this company?

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