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Ssangyong’s Dismissed Workers End Strike

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By Park Si-soo

Staff Reporter

A 77-day confrontation between laid-off workers and police at Ssangyong Motor plant came to an end Thursday after the protesters voluntarily ended their occupation of a paint shop at the factory.

The conflict ended after management announced that 48 percent of some 1,000 fired workers will be put on unpaid long-term leave instead.

The protesters walked out of the shop which they had occupied to protest the massive job cut plan.

Police officers checked the identifications of those moving out of the factory to sort out the masterminds of the violent strike. An officer at the scene said legal action would be taken against the leaders of the violence.

The accord came after several days of raids by special police units to disperse the fired workers who had been occupying the facility since late May to protest layoffs authorized by a court in February when Ssangyong entered bankruptcy protection.

Police plan to detain at least 21 union leaders and question around 100 protesters who had attacked officers by either firing steel ammunition from slingshots or throwing Molotov cocktails at them.

Some 30 protesters remained inside the plant to protest the accord, police said.

The union accepted a plan to save 48 percent of some 1,000 workers by giving unpaid long-term leave of absence - Ssangyong had previously offered this to 40 percent of them.

The laid-off workers occupied three buildings in the plant on May 22 after management shed 48 percent of the company's payroll.

About 1,670 workers have left the company through voluntary retirement plans.

Ssangyong received bankruptcy protection in exchange for implementing a turnaround plan calling for 36 percent of its workforce, or 2,646 employees, to be cut.

The standoff has darkened prospects for the carmaker's survival, costing nearly 316 billion won ($258.3 million) in lost production during the strike.

On Wednesday, several creditors of Ssangyong filed a petition with a court in Seoul to liquidate the strike-hit carmaker to recoup their money.

The creditors represented some 600 suppliers of Ssangyong, which owes them 276 billion won.

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 a 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.

pss@koreatimes.co.kr