Ssangyong Motor Forms Special Consultative Body of Labor, Management, Civil, and Government for Business Normalization

Ssangyong Motor Labor-Management-Government-Community Special Consultative Body (Photo by Ssangyong Motor)

[Asia Economy Reporter Kim Ji-hee] Ssangyong Motor has decided to form a special consultative body involving labor, management, civic groups, and government to normalize management and revitalize the local economy.

Ssangyong Motor announced on the 8th that it had formed the special consultative body with representatives from labor, management, civic groups, and government. The consultative meeting held at Pyeongtaek City Hall was attended by Ye Byeong-tae, CEO of Ssangyong Motor; Jeong Il-gwon, chairman of the labor union; Yoo Ui-dong, member of the National Assembly; Hong Gi-won, elected member of the National Assembly; Moon Sung-hyun, chairman of the Economic, Social and Labor Council under the President; and Jeong Jang-seon, mayor of Pyeongtaek.

At this meeting, the participants reached a consensus that the normalization of Ssangyong Motor’s management would serve as a driving force for revitalizing the Pyeongtaek local economy, which has been struggling due to the novel coronavirus disease (COVID-19). They mutually shared the view that conditions for Ssangyong Motor’s sustainable management and the revitalization of Pyeongtaek’s economy should be considered together.

The special consultative body plans to continuously hold working-level meetings and consultative sessions to develop various measures and support activities.

Pyeongtaek City has already taken administrative support measures, such as selecting Ssangyong Motor as the supplier for official vehicles planned for purchase this year in January. Ssangyong Motor’s labor and management also agreed on management reform measures focusing on welfare suspension and reduction starting from September last year, before the global economic downturn caused by COVID-19 began. In December of the same year, they also prepared reform measures such as the return of wages and bonuses by all employees and the implementation of a rotating sabbatical system (paid leave) for office workers.

Furthermore, Ssangyong Motor has addressed short-term liquidity issues through a 40 billion KRW new fund procurement from the major shareholder Mahindra and the sale of non-core assets. To secure future competitiveness, it is also exploring cooperation plans with various stakeholders, including the major shareholder. Notably, Ssangyong Motor was the first in the industry to conclude the 2020 wage and collective agreement without disputes.

A Ssangyong Motor official said, "We will steadily implement self-help efforts such as management reform plans, expand sales volume, quickly normalize management, and contribute to the development of the local community."

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