Umbrella union to strike for solution to Ssangyong standoff

SEOUL, July 27 (Yonhap) -- A South Korean umbrella labor union said Monday it
will stage a one-day walkout this week to call on the government to put forward a
solution to strike-stricken Ssangyong Motor Co.
Hundreds of unionized workers have occupied a paint shop and other facilities of
Ssangyong's sole factory in Pyeongtaek, about 40km south of Seoul, for about two
months to protest a mass layoff, paralyzing its production. Thousands of riot
police have cordoned off the plant since last week in the run-up to a raid.
The Korean Metal Workers' Union said about 80,000 workers of its member companies
are expected to attend a six-hour strike Wednesday to call for government efforts
to resolve the Ssangyong standoff.
Ssangyong Motor, the smallest carmaker in South Korea, was placed under
bankruptcy protection in exchange for firing 36 percent of its workforce, or
2,646 employees. A total of 1,670 workers have left the company through voluntary
retirement programs, while the remaining 976 workers have gone on strike.
Ssangyong's court-appointed managers and government officials have warned that
the ailing carmaker may become insolvent if the strike continues.
Ssangyong has to submit a turnaround plan to its creditors and a bankruptcy judge
by Sept. 15. In the first six months of this year, Ssangyong's sales plunged 73.9
percent on-year to 13,020 units, hit by the strike and an economic slump.
Ssangyong is still 51-percent owned by China's Shanghai Automotive Industry
Corp., but the Chinese parent lost managerial control after Ssangyong entered
bankruptcy protection.
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