Ssangyong Strike

Labour disputes have always characterised South Korean industrial relations. Strikes and protests by workers are a regular affair there. Even so, Ssangyong Motors probably has the dubious honour of having the angriest workers. For almost 75 days, Ssangyong's plant in Pyeongtaek, Gyeonggi looked more like a war zone than a car plant - with angry workers setting cars on fire, firing metal parts from handmade slingshots to police, helicopters dropping tear gas and police trucks firing water cannons on striking workers. The source of the dispute is laying off of 976 plant workers. Earlier this year, Ssangyong's principal owners Shanghai Automotive Industry Corp (SAIC) gave up on the company and put the company up on receivership, despite numerous appeals from the South Korean government.





Creditors from South Korean banks that assumed control of the company demanded that at least 2,500 staffs be laid off, which is about a third of its workforce. A large majority of the staff took voluntary separation payments or unpaid leave but the last 1000 of them decided to stage a protest by occupying the paint factory.

Though a compromise has been reached between the workers and the management, a strong distrust between workers and the company meant that the quality of Ssangyong vehicles will continue to suffer. Angry people can never make good cars.


The local distributor of Ssangyong is not doing very well either. Competive Supreme has just closed down their Bangsar outlet. The company is bogged down by one set of bad luck (or bad decision?) after another. Its subsidiary Brookland Motors was setup right before MG-Rover collapsed, it invested in CKD operations for the Rexton II at a time when interest in SUVs are slowly waning, they took over the showroom along Federal Highway formerly occupied by Peugeot (when it was under Cycle and Carriage) and decorated it full of Ssangyong branding materials - and then proceeded to display the Citroen cars (investing in distributorship of Citroen vehicles is another decision that is difficult to comprehend) in the showroom.
From WSJ.