[Update] Ssangyong Motor Union Approves Self-Rescue Plan with 52.1% Support

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] The labor union vote on the self-rescue plan of Ssangyong Motor, which is undergoing corporate rehabilitation procedures, was finally approved with 52.1% of union members in favor.

According to Ssangyong Motor and the Ssangyong Motor Labor Union on the 8th, out of 3,224 union members who participated in the vote on the 'Special Labor-Management Agreement for Business Normalization' that started the day before, 1,681 voted in favor.

The main contents of the self-rescue plan include ▲ two years of unpaid leave ▲ extension of the current wage cuts and suspension of welfare benefits for two years ▲ an additional 20% wage cut for executives ▲ changing the collective agreement revision cycle from the current two years to three years ▲ efficient workforce management and production response ▲ pledge of no labor disputes ▲ additional sale of idle assets (4 locations), etc.

Additionally, from the perspective of efficient production and workforce management, the plan implements job transfers in response to market demand and does not hire new employees for natural reductions such as retirement, effectively achieving workforce restructuring and productivity improvement.

Jung Yong-won, the court-appointed manager of Ssangyong Motor, stated, "This self-rescue plan declares the company's minimum will to survive both internally and externally," and emphasized, "Based on the rehabilitation plan including the self-rescue plan, we will promptly complete the merger and acquisition (M&A) to establish a long-term survival foundation for Ssangyong Motor."

Meanwhile, Ssangyong Motor obtained court approval the day before for the promotion of M&A and the selection of the sales lead manager, a consortium consisting of Han Young Accounting Corporation and Sejong Law Firm.