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Ssanyong Workers Escape Axe ![]() |
Ssangyong Motor and its union reached a tentative agreement on Friday, 43 days after the union went on strike. In negotiations at the automaker’s factory in Pyeongtaek, labor tentatively agreed to a wage freeze this year, halting some benefits for two years and flexibly operating assembly lines focused on bestselling models. In return, the company will not lay off 544 workers and invest W300 billion (US$1=W962) a year in developing new models and engines, and marketing and warranty service networks until 2009.
Ssangyong will borrow US$200 million from a Chinese bank to finance the investment for this year. The strike has disrupted production of 15,100 cars to cost the carmaker W302 billion since it started on July 14, the firm says. |