Ssangyong Motor to rehire former workers if business turns around

Ssangyong Motor Co. will consider rehiring workers who had left the company five years ago if the automaker turns a steady profit, the head of the automaker's parent group said Tuesday.

Mahindra Group Chairman Anand Mahindra came to South Korea to celebrate the launch of the Tivoli small-size SUV, the first new vehicle launched by Ssangyong since it was purchased by India's Mahindra & Mahindra Ltd. in 2011.

"If the Tivoli is successful and if the turnaround of Ssangyong is successful, then I assure you that when the time comes and the need comes for fresh recruitment, we will very certainly recruit from the people who lost jobs in 2009," he said at the launching event.

Ssangyong cut 2,646 jobs, approximately 37 percent of the total workforce, in April 2009 after it was put under court receivership in the aftermath of the 2008 global financial crisis.

The layoff sparked a 77-day-long strike by 5,500 unionists at the company's factory in Pyeongtaek, some 70 kilometers south of Seoul. Some 1,700 employees chose to retire, while 164 were dismissed and 455 were forced to take unpaid leave.

Of the 164 dismissed, 153 filed a lawsuit against their former employer, arguing that a sales loss is not a just reason to lay off employees. Supported by civic groups and religious leaders, the dismissed workers have been participating in a monthslong protest demanding reinstatement.

A lower court sided with the carmaker, which was later overturned by a Seoul appeals court in February 2014. In November, the Supreme Court ordered the appeals court to reconsider its ruling that annulled the layoffs by Ssangyong Motor.

The chairman expressed his sympathy with those who lost their jobs.

"I am deeply concerned about the situation of the people who lost their jobs. My heart is full of concern for them and for their families," he said.

"I come from a company whose culture is to care and trust people and be trusted by the people and the communities in which we work. Therefore, it is naturally a matter of great sadness for me if there are people who are undergoing hardship."

But he hinted that there would not be any quick action to resolve the issue related to the ongoing protest, saying that Ssangyong Motor still faces "many challenges," though it has made marked progress over the past years.

"My priority has been the survival of Ssangyong and the protection of the jobs of 4,800 people who are working, as well as the well-being of more than 100,000 suppliers and dealers," he said.

"It would be irresponsible for me to make a short-term decision reacting to the short-term pressure, jeopardizing the job security of almost 5,000 people in the long run."

Mahindra placed more emphasis on tackling challenges confronting Ssangyong Motor and turning its business around first, saying that his company believes in sharing prosperity.  But in order to share prosperity, "you first have to create it," he said.

As for the partnership with Ssangyong, he said it was not just a portfolio investment but for a long-term collaboration. "We believe in the future of Ssangyong, and we are here for the long term."

Ssangyong Motor CEO Lee Yoo-il told reporters he expects that the company will reach its break-even point within two to three years and that it plans to invest about 1 trillion won ($922.9 million) in the next three years with a plan to roll out a new car every year. (Yonhap)