Ssangyong, fired workers in 'final talks' to end occupation

(ATTN: ADDS details, background; AMENDS headline)
PYEONGTAEK, South Korea, Aug. 6 (Yonhap) -- Ssangyong Motor Co. and fired workers
occupying a paint shop in the carmaker's sole assembly plant resumed Thursday
what both sides called "final talks" to end a 77-day occupation, reviving hopes
of a peaceful end to the violent dispute.
The resumption of talks came after several days of raids by police commandos to
disperse some 450 fired workers who have been occupying the painting facility
since May 22 in protest against the layoffs, authorized by a court in February
when Ssangyong entered bankruptcy protection.
Earlier in the day, the Ssangyong union proposed a resumption of talks with a new
offer and the management accepted it, both sides said. They described the talks
as "final."
Park Young-tae, one of two court-appointed managers for Ssangyong, and Han
Sang-kyun, the union leader, began the talks inside the plant at 11:00 a.m. in
this rural town of Pyeongtaek, about 70km south of Seoul.
"The company decided to accept the proposal because it is the most plausible
method to peacefully resolve the situation," a company official said.
Previously, Ssangyong offered to save 40 percent of some 1,000 laid-off workers
by giving them unpaid long-term leaves of absence. But the talks collapsed as the
union reiterated its demand that all of the workers be spared from the layoffs.
Some 1,000 fired workers occupied the painting facility on May 22, with more than
half of them having voluntarily given up the occupation as police stepped up
their siege of the facility.
On Wednesday, police commandos seized all facilities in the plant with the
exception of the paint shop as it is filled with flammable materials. Scores of
protesters and police were injured in violent clashes earlier in the week.
Ssangyong, the smallest carmaker in South Korea, received bankruptcy protection
in exchange for implementing a turnaround plan calling for 36 percent of its
workforce, or 2,646 employees, to be cut.
Since then, some 1,670 workers have left the company through voluntary retirement
plans, while the remaining 976 workers have been on strike.
The standoff has darkened the prospects for the carmaker's survival, costing
nearly 316 billion won (US$258.3 million) in lost production.
Also on Wednesday, several creditors of Ssangyong filed a petition with a
bankruptcy court in Seoul demanding the court swiftly liquidate the strike-hit
carmaker to recoup their debts.
The creditors represented some 600 suppliers of Ssangyong, which owes 276 billion
won to them.
The petition is not legally binding, however, and a decision by the court is
expected to come after Sept. 15, when Ssangyong is required to submit its
restructuring plan.
China's Shanghai Automotive Industry Corp. retains 51 percent ownership over
Ssangyong, though the parent lost management control after the carmaker entered
bankruptcy protection.
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