Ssangyong Motor Enters Rehabilitation Process, Half of Employees Face '2-Year Unpaid Leave Plan'... No Restructuring Planned

[Image source=Yonhap News]

[Asia Economy Reporter Park Jun-yi] Ssangyong Motor, which is undergoing corporate rehabilitation procedures, has prepared a self-rescue plan to implement unpaid leave for half of its employees for up to two years. The restructuring plan, which faced opposition from the labor union, was excluded.

According to industry sources on the 1st, Ssangyong Motor has prepared the self-rescue plan and explained it to union delegates and team leaders.

According to the self-rescue plan, Ssangyong Motor will implement unpaid leave for two years, applying it to 50% of technical staff and 30% of administrative staff for one year, and then renegotiate whether to maintain unpaid leave based on sales conditions.

The period for wage cuts and suspension of welfare benefits will be extended for two years until June 2023, and the plan also includes an additional 20% salary cut for executives on top of the existing 20% reduction.

Unpaid wages and wage reductions will be paid sequentially after the rehabilitation process is completed. The plan also includes selling four real estate properties, including the parts center, through the Korea Asset Management Corporation (KAMCO) and then leasing them back.

The personnel restructuring, which the labor union had opposed, is not included. However, the cycle for changing collective agreements, excluding wage negotiations between labor and management, will be changed from the current two years to three years, and a win-win agreement will be made to refrain from wage increases and related disputes until business normalization.

The Ssangyong Motor labor union plans to explain this self-rescue plan to its members on the 2nd and hold a general meeting of members on the 7th to 8th to vote for or against it. If the self-rescue plan passes the general meeting with a majority vote, Ssangyong Motor plans to submit it to the court.

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