ID :
38225
Wed, 12/31/2008 - 08:53
Auther :
Shortlink :
http://m.oananews.org//node/38225
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Ssangyong Motor workers to vote on strike next week amid crisis
SEOUL, Dec. 31 (Yonhap) -- Unionized workers at Ssangyong Motor Co., which will
face liquidation unless its Chinese parent Shanghai Automotive Industry Corp.
injects fresh capital to the ailing carmaker, were set to vote on a proposed
strike next week to protest against possible job cuts, a company official said
Wednesday.
About 5,200 union workers at Ssangyong will vote on Monday and Tuesday, said
Chung Mu-young, a Ssangyong spokesman.
If approved, it will deal another major blow to Ssangyong. The troubled carmaker
has been in negotiations with Shanghai-based SAIC for weeks over fresh funds in
exchange for potential job cuts, but no progress has been reported so far.
"The two sides are now in the process of tuning their stances on several issues,"
Chung said, declining to elaborate further.
Local newspapers, citing unnamed company sources, have reported that SAIC had
requested Ssangyong to slash as many as 3,000 workers, or nearly half of its
factory jobs. Chung denied the reports.
The Ssangyong union has threatened to strike unless the Chinese parent abandons a
planned layoff of workers.
Union leaders also accused SAIC, which acquired a 51-percent stake in the
smallest carmaker in South Korea in late 2004, of stealing technology and failing
to honor its investment pledge worth 1.2 trillion won (US$900 million). South
Korean prosecutors have been investigating into the allegations of a technology
leak.
"At that time of takeover, Shanghai Automotive pledged to invest 1.2 trillion won
and expand production capacity to 300,000 vehicles," said Han Sang-kyun, the
union leader. "But they didn't spend a penny over the past four years."
China's largest state-run carmaker SAIC has been under pressure to provide fresh
funds to Ssangyong.
Korea Development Bank, Ssangyong's main creditor, called for SAIC to provide 320
billion won to the ailing carmaker. If so, KDB said it will consider extending
loans to Ssangyong.
On Monday, two Chinese media outlets reported SAIC was preparing to exit
Ssangyong, but Ssangyong officials denied the reports.
Ssangyong is expected to post a loss of up to 100 billion won this year. The
liquidity shortage forced the company to delay salary payments and cut employ
benefits.
Hit by a continued slump in vehicle sales, Ssangyong is idling its lone plant for
three weeks. This is the third time this year that the troubled automaker has
suspended activity at the plant in the port city of Pyeongtaek, about 70
kilometers south of Seoul.
Last month, Ssangyong, which has a production capacity of 200,000 vehicles a
year, sold 3,835 vehicles, down 63 percent from a year ago.
On Tuesday, Korea Investors Service Inc., a local credit risk appraiser,
downgraded its rating for Ssangyong's long-term debt to junk bond status, citing
"growing uncertainty over financial aid" by SAIC.
(END)
face liquidation unless its Chinese parent Shanghai Automotive Industry Corp.
injects fresh capital to the ailing carmaker, were set to vote on a proposed
strike next week to protest against possible job cuts, a company official said
Wednesday.
About 5,200 union workers at Ssangyong will vote on Monday and Tuesday, said
Chung Mu-young, a Ssangyong spokesman.
If approved, it will deal another major blow to Ssangyong. The troubled carmaker
has been in negotiations with Shanghai-based SAIC for weeks over fresh funds in
exchange for potential job cuts, but no progress has been reported so far.
"The two sides are now in the process of tuning their stances on several issues,"
Chung said, declining to elaborate further.
Local newspapers, citing unnamed company sources, have reported that SAIC had
requested Ssangyong to slash as many as 3,000 workers, or nearly half of its
factory jobs. Chung denied the reports.
The Ssangyong union has threatened to strike unless the Chinese parent abandons a
planned layoff of workers.
Union leaders also accused SAIC, which acquired a 51-percent stake in the
smallest carmaker in South Korea in late 2004, of stealing technology and failing
to honor its investment pledge worth 1.2 trillion won (US$900 million). South
Korean prosecutors have been investigating into the allegations of a technology
leak.
"At that time of takeover, Shanghai Automotive pledged to invest 1.2 trillion won
and expand production capacity to 300,000 vehicles," said Han Sang-kyun, the
union leader. "But they didn't spend a penny over the past four years."
China's largest state-run carmaker SAIC has been under pressure to provide fresh
funds to Ssangyong.
Korea Development Bank, Ssangyong's main creditor, called for SAIC to provide 320
billion won to the ailing carmaker. If so, KDB said it will consider extending
loans to Ssangyong.
On Monday, two Chinese media outlets reported SAIC was preparing to exit
Ssangyong, but Ssangyong officials denied the reports.
Ssangyong is expected to post a loss of up to 100 billion won this year. The
liquidity shortage forced the company to delay salary payments and cut employ
benefits.
Hit by a continued slump in vehicle sales, Ssangyong is idling its lone plant for
three weeks. This is the third time this year that the troubled automaker has
suspended activity at the plant in the port city of Pyeongtaek, about 70
kilometers south of Seoul.
Last month, Ssangyong, which has a production capacity of 200,000 vehicles a
year, sold 3,835 vehicles, down 63 percent from a year ago.
On Tuesday, Korea Investors Service Inc., a local credit risk appraiser,
downgraded its rating for Ssangyong's long-term debt to junk bond status, citing
"growing uncertainty over financial aid" by SAIC.
(END)
