Ssangyong Union to Go After Chinese Owner
By Kim Hyun-cheol
Staff Reporter
Unionized members of the beleaguered Ssangyong Motor announced Monday it will carry out ``every measure possible'' to hold Shanghai Automotive Industry Corporation (SAIC) legally and financially accountable for the company's plight.
``A petition campaign will also encourage civic groups to pursue the matter,'' Han Sang-kyun, Ssangyong's union leader, told reporters at the company's Pyeongtaek plant in Gyeonggi Province. The campaign is aimed at confronting the Chinese owner with its alleged failure to meet its investment promises, and illegal transfers of core technology.
Separately, the union said it will not go on a strike even though most employees supported a walkout in last week's vote. The union opened ballots for the vote prior to a press conference, and 75 percent of the 94 percent of participating members supported a strike.
``There is no plan for an imminent strike,'' Han said. ``The union is ready to work together with the management at any time toward the company's recovery.''
Ssangyong currently has some 7,100 employees.
``A total of 1,500 workers have been let go since SAIC took over the company, with most temporary employees also out of jobs due to a forced plant shutdown,'' Han said.
The union will hold a protest rally Tuesday in front of the Chinese Embassy in condemnation of SAIC.
SAIC also faced suspicions that its decision to seek court receivership for Ssangyong was premeditated, with three Korean members of the Ssangyong board sidelined from the decision. Last week, SAIC held a two-day board of directors' meeting in Shanghai. The board's decision to go for court receivership took Korean members by surprise.
President Chen Hong, who was re-elected as the two-year chairperson of the Ssangyong board in March 2007, has two months before his term expires. Three Chinese directors had their offices terminated in March while Ssangyong CEO Lan Qingsong has eight months to go.
Lan Qingsong is in charge of Ssangyong Motor and his two co-CEOs, Choi Hyung-tak and Zhang Haitao, stepped down after the board meeting.
Meanwhile, the Ministry of Knowledge Economy had a meeting Monday with the Finance Services Commission (FSC) to discuss ways to support Ssangyong's subcontractors. A meeting is scheduled today for ministry officials and subcontractors.
The Korea Development Bank, Ssangyong's main creditor, is planning, in consultation with the ministry, a bailout plan that will provide up to 300 billion won to the troubled automaker.
On a radio talk show, FSC Vice Chairman Lee Chang-yong Monday said that it was too early for aid details to be released when the government is still waiting for the ruling on Ssangyong's receivership from the court even though the plan is meant to help subcontractors.
Ssangyong has posted a deficit for four consecutive quarters due to deteriorating demand for sports utility vehicles, which account for about half of its revenue. The company also posted a 30-percent fall in sales last year.
KDB said the automaker needs 600 billion won ($451 million) of financing to stay alive. Ssangyong, which currently has 150 billion-won in debt due in April, owes the state-run KDB about 240 billion won.