Ssangyong Motor Labor and Management Hold Signing Ceremony for Unpaid Leave and Other Self-Help Measures Agreement

Ssangyong Motor held a signing ceremony for the company's rehabilitation on the 14th at the Pyeongtaek plant, attended by labor and management representatives. Administrator Jeong Yong-won (right in the photo) and Labor Union Chairman Jeong Il-kwon are taking a commemorative photo after signing the agreement.

[Asia Economy Reporter Changhwan Lee] Ssangyong Motor announced on the 14th that it held a labor-management signing ceremony for the self-rescue plan related to corporate rehabilitation and strengthened cooperation between labor and management for the prompt normalization of management.

The signing ceremony held at the Pyeongtaek plant in Gyeonggi Province was attended by related executives and employees, including administrator Jeong Yong-won and Ssangyong Motor Labor Union Chairman Jeong Il-kwon.

The self-rescue plan was approved with 52.14% in favor in the union member approval vote conducted over two days on the 7th and 8th by Ssangyong Motor labor and management.

The main contents include two years of unpaid leave, a two-year extension of the current wage cuts and suspension of welfare benefits, an additional 20% wage cut for executives, a no-strike pledge, changing the collective agreement revision cycle from the current two years to three years, efficient workforce management and production response, and additional sales of idle assets (four locations).

The detailed implementation plan for unpaid leave will be decided through labor-management consultations within this month and is scheduled to be fully implemented from early next month.

Additionally, it was agreed not to hire new employees for the natural decrease in personnel, such as about 150 retirements per year on average (a natural decrease rate of 17%) over the next five years starting this year.

A company official said, “Using the approval of the self-rescue plan as a stepping stone, both labor and management plan to accelerate attracting competitive investors and to promptly complete the corporate rehabilitation process through ‘pre-approval M&A’ by improving the financial structure and enhancing corporate value.”

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