Sunday May 31, 07:45 AM
SKorean carmaker Ssangyong closes strike-hit plant
SEOUL (AFP) - South Korea's smallest automaker Ssangyong Motor (003620.KS - news) said Sunday that it had temporarily shut its main factory, which has been occupied by workers striking over massive planned job cuts.
"The closure was inevitable because of mounting losses, which have endangered our survival," the company said in a statement, adding it would ask police to evict the workers from the plant in Pyeongtaek, south of Seoul.
The work stoppage began on May 21 after the company announced plans to sack 2,646 employees -- 36 percent of its workforce -- in what would be the country's first mass layoffs since the onset of the global economic crisis.
Workers occupying the factory are demanding managers minimise job losses through work-sharing.
The debt-stricken company in February won court protection from creditors. The court told its Chinese majority owner, Shanghai Automotive Industry Corp (SAIC), to give up management control.
Court-appointed managers have since struggled to turn the company around through job cuts and cost savings.
Ssangyong (001250.KS - news) specialises in sports-utility vehicles and luxury sedans.
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