Ssangyong Motor Shows Signs of Business Normalization Path

Resolving the Reinstatement of Dismissed Workers... High-Intensity Self-Help Measures and Labor-Management Harmony Play a Role

[Asia Economy Reporter Kiho Sung] Ssangyong Motor has put an end to the 'Ssangyong Motor restructuring crisis' after 11 years and taken a step closer to normalizing management. Unlike other automakers facing conflicts with labor unions, the resolution of the issue regarding reinstated laid-off workers at Ssangyong Motor is evaluated as the result of the company's strong self-rescue plan and the union's decisive action working in tandem.

According to the industry on the 28th, recently, 46 reinstated laid-off workers at Ssangyong Motor unanimously decided to accept the company's return plan after an emergency discussion. Amid declining automobile sales due to weakened consumer sentiment caused by the COVID-19 pandemic, Ssangyong Motor's labor and management chose the path of harmony.

On the 24th, Ssangyong Motor opened the way for reinstatement by announcing, "We have decided to assign the 46 reinstated laid-off workers currently on paid leave to departments starting May 1." The 46 workers on leave will be assigned to departments from May 1, undergo two months of on-the-job training (OJT) and work education, and begin field work on July 1.

After experiencing a crisis, including recording the largest deficit since the global financial crisis last year, Ssangyong Motor's labor and management jointly prepared a high-intensity self-rescue plan. In September last year, labor and management agreed on proactive measures for management innovation, such as suspension and reduction of welfare. Then, in December of the same year, through a second self-rescue plan, they introduced reform measures including the return of bonuses, return of performance and production incentives, and implementation of a rotating sabbatical system (paid leave) for office workers. It is reported that the average salary cut per Ssangyong Motor employee for management normalization was about 10 million KRW.

Labor and management voluntarily gave up their vested interests for the company's future. This is seen as a distinctly different atmosphere compared to other automakers that continue strikes related to wage and collective bargaining despite facing a crisis of negative production for two consecutive years.

A Ssangyong Motor official said, "We are grateful that all employees and the union united for the self-rescue plan prepared for management normalization and future survival," adding, "We will make company-wide efforts to overcome the crisis as soon as possible and secure future competitiveness."

This content was produced with the assistance of AI translation services.