On Dec. 30, Ssangyong Motor’s management and labor union reached a landmark agreement to gradually rehire fired workers, therefore putting an end to a 6-year-long dispute over the massive layoffs of Ssangyong Motor employees back in 2009 when the automaker filed for court receivership.
On Dec. 30, Ssangyong Motor’s management and labor union and the Ssangyong Motor chapter of the Korea Metal Workers’ Union officially signed an agreement to normalize the management of Ssangyong Motor Co. (the local unit of Indian auto conglomerate Mahindra & Mahindra Ltd.) at Ssangyong Motor's Pyeongtaek plant in South Korea.
Under the agreement, Ssangyong’s management will rehire dismissed workers in stages, drop all compensation suits filed against the labor union; raise a fund to help support the dismissed workers seeking reemployment and the bereaved families of 26 laid off workers who died from disease or committed suicide after being fired. Ssangyong Motor’s management and labor union also agreed to make efforts to normalize the management of the company.
Ssangyong Motor CEO Choi Johng-sik said: “The Ssangyong management, labor union and the Ssangyong branch of Korea Metal Workers’ Union held trilateral negotiations to settle the six-year-long dispute over the 2009 layoffs. With this breakthrough settlement, we can finally focus on normalizing Ssangyong Motor’s operations.”
In January, Anand Mahindra, chairman of Mahindra Group, the largest shareholder of Ssangyong Motors, remarked: “Our first order of business is to normalize the management of Ssangyong Motor. Once Ssangyong Motor’s management situation has improved, I will set about a gradual reinstatement of workers laid off in 2009.”