Ssangyong Motor Union "Regret Filing for Rehabilitation Procedure... Will Not Oppose If Employment Is Guaranteed"

"Mahindra Must Take Responsibility in Sale"
Also Urges Government and Creditors for Active Support

[Image source=Yonhap News]

[Asia Economy Reporter Kim Ji-hee] The Ssangyong Motor Labor Union expressed regret over the company's filing for corporate rehabilitation proceedings (court receivership) again after 11 years. The union stated that it does not oppose rehabilitation procedures that guarantee total employment and urged support from Mahindra, as well as the government and creditors.

In a press release on the 23rd, the union said, "We express regret over the filing for court receivership for the first time in 11 years since 2009," adding, "We agree with the submission of the application to suspend the start of rehabilitation proceedings (ARS system) to the court as a decision to protect total employment, and respect the court's wise judgment in applying it."

It also stated, "There is no change in the union's core policy of total employment stability," and added, "If layoffs that distort the value of labor-management coexistence are carried out, we will never back down."

The union emphasized its achievements, noting that since transitioning to company-specific unions, it has maintained a cooperative labor-management culture and reinstated all dismissed workers to the workplace in May this year. It also mentioned that since last year, during the process of implementing self-help measures such as wage cuts and welfare suspension, an early agreement on wage freeze was reached this year. The union self-assessed, "The scale of self-help measures by Ssangyong Motor workers amounts to 100 billion won," and said, "This is the result of the union fulfilling its role to minimize the company's risks amid liquidity crisis."

Meanwhile, the union demanded a responsible attitude from the major shareholder Mahindra. They said, "This rehabilitation procedure also occurred because Mahindra failed to reach an agreement with investors, causing delays in the sale negotiations," and added, "We hope Mahindra will take a responsible approach to ensure the sale, which is part of the promised process to normalize Ssangyong Motor, is successfully completed."

Furthermore, the union urged the government and creditors to play their roles. They stated that once Mahindra's responsibility is enforced through the sale, the government and creditors should actively support the process. The union appealed, "During the ARS period, the government and creditors must actively participate to quickly reach an agreement among stakeholders so that the sale can be finalized," and warned, "More than 600,000 workers and their families related to Ssangyong Motor and affiliated companies could face a crisis of livelihood, and if threatened, a large-scale employment crisis could become a reality."

Finally, the union said, "We are doing our best to become a union that meets the public's expectations," and added, "We reflect on and restrain ourselves for undergoing rehabilitation proceedings again in 2023, after the full reinstatement of dismissed workers in 2020, which ended the pain of 2009."

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