Ssangyong Motor Labor and Management·KG Consortium "New Plant Promotion... R&D Investment Expansion"

Signing of Labor-Management Agreement on Job Security, Long-Term Investment, and Win-Win Cooperation

From the left, Seon Mok-rae, Chairman of the Ssangyong Motor Union, Jeong Yong-won, Ssangyong Motor Administrator, and Eom Gi-min, CEO of KG ETS, are holding the tripartite special agreement related to the Ssangyong Motor M&A and posing for a commemorative photo.

[Asia Economy Reporter Choi Dae-yeol] The KG Consortium, currently proceeding with the acquisition process of Ssangyong Motor, announced on the 29th that it has signed a tripartite special agreement with the company and the labor union, covering employment guarantees and long-term investments.

The agreement includes a total employment guarantee for all current employees, recognition of the labor union as the bargaining representative, and succession of all collective agreements. The three parties to the agreement agreed to uphold various labor-management agreements previously concluded and to faithfully fulfill the repayment of public claims, including unpaid wages.

The agreement also includes a mid- to long-term development strategy. It was decided to strengthen the portfolio for new technology development such as electrification and autonomous driving, as well as new car development. They also agreed on plans and schedules for financing and investment execution necessary for mid- to long-term projects, and shared the same intention to enhance research and development (R&D) functions through continuous and active investment expansion.

A task force team (TFT) will be formed and operated to promote the construction of a new factory. The company has previously produced around 160,000 to 170,000 units depending on shift work conditions. Recently, production has been at the low 100,000 units level. Since there are opinions that production facilities need to be increased to secure competitiveness, additional factories will be built depending on future circumstances.

This agreement is based on the investment contract between the company’s labor-management and KG, the final selected acquirer. The company stated, "The special agreement, which was derived through mutual consent centered on the labor union’s demands during the M&A process, is an unprecedented case," and added, "This agreement will serve as a cornerstone for synergy between the two parties and for sustainable future growth."

KG Tower electronic billboard displaying SsangYong Motor's new car Torres advertisement

Along with this, once the rehabilitation process is completed, a mid- to long-term development plan will be established and a briefing session will be held. Both labor and management agree that increasing sales volume is important to accelerate business normalization. To this end, they agreed to actively cooperate in management activities to secure financial soundness through flexible production operations responding to market demand changes, enhancing quality competitiveness, and cost reduction. They also promised to become a company loved by the public through a win-win labor-management culture.

At the agreement ceremony held yesterday at the Pyeongtaek plant, Ssangyong Motor’s administrator Jeong Yong-won, labor union chairman Seon Mok-rae, and KG ETS CEO Eom Gi-min, appointed as the head of the acquisition team representing the KG Consortium, attended. To implement and monitor the agreement, the Ssangyong Motor Innovation Committee will be formed, and progress on development tasks will be reviewed semiannually as a principle. Meetings will also be held upon request from either labor or management.

Representatives of Ssangyong Motor’s labor and management said, "This special agreement was signed to establish a broad framework to prevent conflicts and misunderstandings that may arise during the M&A process and to achieve early business normalization," and added, "It is highly significant that the company’s commitment to business normalization is embodied in this tripartite agreement."

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