Ssangyong Motor, 46 Paid Leave Employees Assigned to Departments Starting May 1

Final Labor-Management Agreement Reached After Four Rounds of Win-Win Development Committee Meetings

Ssangyong Motor Company building exterior (Photo by Ssangyong Motor)

[Asia Economy Reporter Kim Ji-hee] Ssangyong Motor's labor and management announced on the 24th that the reinstated laid-off workers, who have been on paid leave due to the company's difficult business conditions after full reinstatement last year, will be assigned to departments starting May 1.

Ssangyong Motor's labor and management agreed on a management innovation plan last September, focusing on welfare suspension and reduction to secure future competitiveness. In December, they pushed for high-intensity management innovation measures such as the return of wages and bonuses by all employees and the implementation of a rotating sabbatical system (paid leave) for office workers. Correspondingly, the reinstated laid-off workers were also converted to paid leave (70% of regular wages paid).

The four-party representatives (Ssangyong Motor, Ssangyong Motor Labor Union, Metal Workers' Union Ssangyong Motor Branch, and the Presidential Committee on Economic, Social and Labor Affairs) have held three additional discussions since the first Win-Win Development Committee meeting on the 21st of last month to resolve the issue of reinstated laid-off workers. Following the final agreement between labor and management through the Win-Win Development Committee, 46 paid leave workers will be assigned to departments starting May 1. After two months of OJT and job training, on-site placement is scheduled for July 1.

Previously, the four-party representatives agreed on the reinstatement of laid-off workers in September 2018. In December of the same year, Ssangyong Motor implemented additional reinstatement for 60% of the reinstatement candidates to respond to the need for additional manpower due to new car production and reduced working hours. The remaining personnel were reinstated in the first half of last year.

A Ssangyong Motor official said, "Along with the ongoing self-driven management innovation plan, we plan to explore cooperation methods with various stakeholders, including major shareholders, to secure future competitiveness," adding, "We will further strengthen the win-win labor-management relationship and accelerate efforts to secure product competitiveness and increase sales to achieve the common goals of company growth and employment stability."