Ssangyong Motor Approves Unpaid Leave, Likely to Switch to Single Shift System

SsangYong Motor

[Asia Economy Reporter Changhwan Lee] Ssangyong Motor has entered into consultations regarding the implementation methods of unpaid leave following the labor union's decision to accept the self-rescue plan.

According to related industry sources on the 10th, Ssangyong Motor's labor and management are discussing the details to implement the self-rescue plan, which centers on "unpaid leave for half of the employees for 2 years." The unpaid leave is expected to begin as early as next month.

According to the self-rescue plan, since 50% of production workers (technical staff) will take unpaid leave, the leave period is likely to be determined based on the current day and night shifts.

Ssangyong Motor currently operates two shifts, producing around 8,000 units per month. With the start of unpaid leave for production workers, there is also a possibility of switching to a single shift.

For office and administrative staff, since 30% are subject to leave, a plan is being seriously considered to divide them into thirds, allowing one-third to rest for a month and work for two months on a rotating basis.

Although labor and management are still discussing the detailed cycle and methods of unpaid leave, it is expected that production will not be significantly disrupted even if half of the employees take unpaid leave.

Ssangyong Motor plans to operate in this manner for one year and then renegotiate whether to suspend unpaid leave depending on the recovery of market demand.

Ssangyong Motor plans to issue a bidding announcement at the end of this month and officially begin the merger and acquisition (M&A) process. The Korea Development Bank is expected to hold a meeting early next week to announce its position on current issues, including the approval of Ssangyong Motor's self-rescue plan.