By Kang Shin-who
Staff Reporter
The trade union of Ssangyong Motor agreed to a deal with management to end the 77 days of strike over layoffs last week, avoiding what may have been a deadly clash with riot police at the last minute.
But both the union and management face a tougher task: the revival of the automaker.
By Sept. 15, the nation's smallest automaker, which has been put under court protection, must submit a self-rescue plan to the court that is viable and practical enough to justify continuation of protection.
If the court says the plan is plausible, it will convene a meeting of creditors in one or two months to seek their acceptance, something essential for an extension of court protection.
Officials from the government and creditors say they believe the automaker is nonviable on its own so the revival plan should be carried through on the presumption that it will eventually be sold to a third party.
"It's desirable to look for an M&A deal after normalization. Of course, it's a time-consuming process," a creditor said.
Officials from the Korea Development Bank, the main creditor of the company, said the bank will extend 100 billion won in aid to help the company finance severance payments for the employees who have been made redundant.
However, creditors are currently negative about providing financial aid for the research and development of new vehicles.
The prosecution and police made it clear that union leaders will be held accountable for leading the illegal occupation of the factory for more than two months and for damaging police property and injuring policemen.
The Gyeonggi Provincial Police Agency said Sunday it has filed a 548-million-won damage suit against Ssangyong union leaders, and senior members of the Korean Confederation of Trade Unions and the Korean Metal Workers Union.
"The union leaders orchestrated violent rallies in June and July in Pyeongtaek, hurting 49 policemen and damaging a police bus and other equipment.
We are going to file another suit against them for the damage and injuries sustained from Aug. 4-5," the agency said in a statement. Police will also file for the seizure of the union leaders' assets.
Separately, the prosecution sought warrants to put 44 of 96 apprehended union leaders under longer custody on charges of leading the illegal rallies.
"Harsh punishment of the leaders of the illegal and violent rally is unavoidable as the illicit strike caused huge economic and social damage," a prosecutor said.
On Sunday, thousands of Ssangyong Motor employees, including unionized workers, came to work at the factory in Pyeongtaek, Gyeonggi Province, with the aim of restarting the assembly of vehicles as early as Wednesday.
However, the union and management have yet to sort out who should be removed from the payroll before revving up production.
The agreement between the two sides called for 52 percent of the 974 workers subject to the layoff to be removed from the payroll. But who will remain and who will quit is yet to be determined.
"Nothing has been decided as to the standards by which those who will be let go will be determined. As a considerable number of union members are being investigated by the police, the standards will be fixed after the probe," a company official said.
In the meantime, the main opposition Democratic Party and three other opposition parties agreed that they will establish a joint committee to investigate what they call the abuse of police power during the dispersion of the striking union members and their supporters who hold rallies outside the factory.
They claimed not only union members but dozens of rally supporters were injured amid the violence used by police and security guards hired by the company.