ID :
39151
Tue, 01/06/2009 - 17:40
Auther :
Shortlink :
http://m.oananews.org//node/39151
The shortlink copeid
Voting on strike closes at Ssangyong Motor, but counting delayed
SEOUL, Jan. 6 (Yonhap) -- Unionized workers at Ssangyong Motor Co., the ailing
South Korean unit of China's Shanghai Automotive Industry Corp., wrapped up
voting Tuesday on a proposed strike, but the union delayed counting to increase
leverage in talks with its Chinese parent.
Ssangyong, the smallest automaker in South Korea, is sinking deeper into a
liquidity crisis and may face liquidation unless SAIC pumps a hefty supply of
capital into the debt-ridden carmaker.
China's state-run SAIC has reportedly called for Ssangyong to slash up to 3,000
jobs, or more than half of its factory workers, in exchange for a possible cash
injection.
On Thursday, SAIC and Ssangyong, which employs a total of 7,100 workers, and the
union will hold a meeting to decide on a restructuring plan, company officials
say. About 5,200 union members of Ssangyong began voting on a proposed strike
against reports of the massive layoff plan.
"We are giving a last chance to Shanghai Automotive," said a union official,
commenting on the delay in counting.
"Unless Shanghai Automotive shows a responsible stance as a major shareholder,
the ballot box will be opened," the union official said.
He added that more than 95 percent of union members cast their ballots. The
Ssangyong union has threatened to strike if SAIC cuts a single job.
SAIC purchased a 51 percent stake in Ssangyong for $500 million in 2004, marking
the first direct investment by a Chinese company into a local manufacturer.
Ssangyong reported a net loss of 98 billion won ($75 million) in the
January-September period last year, hit by slumping sales.
As of November last year, Ssangyong had 877 billion won in interest-bearing
debts, with total liabilities in excess of 1.46 trillion won, according to the
company's filing with the stock exchange.
South Korea's state-run Korea Development Bank, the main creditor of Ssangyong,
has said it would consider extending loans to the cash-strapped carmaker if SAIC
provides financial support to its affiliate first.
On Monday, Ssangyong said it received $45 million from SAIC in financial support,
which would help slightly ease the affiliate's short-term liquidity needs.
(END)
South Korean unit of China's Shanghai Automotive Industry Corp., wrapped up
voting Tuesday on a proposed strike, but the union delayed counting to increase
leverage in talks with its Chinese parent.
Ssangyong, the smallest automaker in South Korea, is sinking deeper into a
liquidity crisis and may face liquidation unless SAIC pumps a hefty supply of
capital into the debt-ridden carmaker.
China's state-run SAIC has reportedly called for Ssangyong to slash up to 3,000
jobs, or more than half of its factory workers, in exchange for a possible cash
injection.
On Thursday, SAIC and Ssangyong, which employs a total of 7,100 workers, and the
union will hold a meeting to decide on a restructuring plan, company officials
say. About 5,200 union members of Ssangyong began voting on a proposed strike
against reports of the massive layoff plan.
"We are giving a last chance to Shanghai Automotive," said a union official,
commenting on the delay in counting.
"Unless Shanghai Automotive shows a responsible stance as a major shareholder,
the ballot box will be opened," the union official said.
He added that more than 95 percent of union members cast their ballots. The
Ssangyong union has threatened to strike if SAIC cuts a single job.
SAIC purchased a 51 percent stake in Ssangyong for $500 million in 2004, marking
the first direct investment by a Chinese company into a local manufacturer.
Ssangyong reported a net loss of 98 billion won ($75 million) in the
January-September period last year, hit by slumping sales.
As of November last year, Ssangyong had 877 billion won in interest-bearing
debts, with total liabilities in excess of 1.46 trillion won, according to the
company's filing with the stock exchange.
South Korea's state-run Korea Development Bank, the main creditor of Ssangyong,
has said it would consider extending loans to the cash-strapped carmaker if SAIC
provides financial support to its affiliate first.
On Monday, Ssangyong said it received $45 million from SAIC in financial support,
which would help slightly ease the affiliate's short-term liquidity needs.
(END)
