Text Fwd: Breaking the gridlock at Ssangyong

* Text fwd from Steve Zeltzer on Feb. 28, 2011

Hankyoreh
Breaking the gridlock at Ssangyong
Feb. 28, 2011

There have been a string of recent suicides among workers laid off by Ssangyong Motor, which enacted a mass-layoff in 2009 followed by a 77-day strike and brutal crackdown. One after another has departed this world, unable to handle the agonizing realities of life that followed their dismissal from the company. The latest is an individual named Im who was found dead Saturday. Adding to the tragedy of the case is the fact that Im’s wife took own life last year in the shock resulting from her husband’s firing. There are said to be around ten workers and worker family members who have died since the Ssangyong strike. It is time for not only Ssangyong Motor labor and management but also politicians and the government to take active steps in devising a solution.

Ssangyong Motor faced severe conflict between labor and management with its early 2009 push for mass layoffs in order to overcome financial difficulties. After a protracted 77-day strike, labor and management managed a dramatic compromise on Aug. 6 of that year, but no follow-up measures ensued. In particular, some 400 or so workers are on unpaid leave, making them effectively laid off while still affiliated with Ssangyong Motor, as was the case with the late Mr. Im. At the time the compromise was reached, the company promised to arrange for rotations for these workers according to production quantity after a year’s time. More than a year and seven months later, it is feigning ignorance. The company must present a timeline for when and how it will be returning these individuals to their operations.

The management may take the view that the financial situation has not yet improved enough to bring in new workers. However, the situation has been gradually stabilizing since the confirmation of Ssangyong Motor’s acquisition by India’s Mahindra Group last year. New shares were issued normally in 2011, and automobile sales are looking up, going from around 35 thousand vehicles in 2009 to over 80 thousand last year. It is also time now to establish measures for laid-off workers, as the company will be able to resume normal operations when it escapes from court receivership around late March.

Politicians and the government should also focus their attention on the plight of these workers. During the strike in 2009, a number of politicians visited the scene to resolve the situation, but no one showed any interest after the strike ended. Politicians must refrain from this kind of self-serving show of benevolence for appearance’s sake. The government, for its part, agreed to respect the current labor-management agreement when the Mahindra Group acquired Ssangyong Motor, and it needs to follow through on this to the letter. When a foreign business acquires a domestic company, it is the government’s natural responsibility to provide administration and oversight to ensure that a labor-management agreement to guarantee the employment of domestic workers is properly upheld.