InfoAnda - Labor talks resume at Ssangyong Motor

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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Labor talks resume at Ssangyong Motor By YOUNGJOON AHN,Associated Press Writer AP - Thursday, August 6 PYEONGTAEK, South Korea - The union and management at crisis-ridden South Korean automaker Ssangyong Motor resumed talks Thursday, an official said, after police commandos overran most of the chaotic factory in a series of raids this week to try and crush a debilitating strike. ADVERTISEMENT The union proposed the meeting Thursday morning, reportedly saying it has made a "fundamental change" in its position in line with an earlier proposal from the company to make fewer layoffs as part of a restructuring and survival plan. Without giving details, a Ssangyong spokesman Lee Won-muk said there is a "possibility" of an agreement but denied news reports a deal was reached on key sticking points and that the union agreed to end the strike. The talks lasted about 80 minutes, Lee said. Union officials could not immediately be reached for comment. Ssangyong has been in court-approved bankruptcy protection since February amid falling sales and mounting red ink. its restructuring plan calls for the shedding of 2,646 workers, or 36 percent of the work force. Some 1,670 have left the company voluntarily but nearly 1,000 opposed the move. Troubles have deepened in the past two months with hundreds of dismissed workers occupying the factory's paint shop _ said to be packed with flammable materials such as thinner _ to protest massive layoffs. During talks last week, the company offered to keep more workers than before in a compromise proposal, but the union rejected it, insisting on no layoffs. The company later threatened to take steps toward liquidation unless the union accepted the proposal. Thursday's negotiations came a day after helicopter-borne commandos fought a pitched battle with militant strikers at Ssangyong Motor Co.'s Pyeongtaek factory, seizing all but one key building and increasing pressure on hundreds of holdout protesters to give up. Commandos overran other buildings earlier in the week in an effort to end a standoff that has threatened South Korea's fifth-largest automaker with insolvency. Wednesday's raid still left hundreds of protesters in one of the paint shop buildings, with police taking control of the rest of the compound in the city of Pyeongtaek, some 45 miles (70 kilometers) south of Seoul. Up to 500 people were believed still inside the facility. The flammable materials inside the paint shop have raised fears of an inferno if there is a full-blown police assault _ which seems to have weighed heavily on police willingness to move in. Union spokesman Lee Chang-kun said this week that a police assault on the paint shop would be deadly. The unrest has cost Ssangyong over 300 billion won ($245 million) in lost production since it began, according to the company. An association of auto parts suppliers comprising 600 companies to which Ssangyong owes about 300 billion won, filed a court petition Wednesday calling for the carmaker's liquidation. Ssangyong, which mostly manufactures light SUVs and a luxury sedan, is majority-owned by Shanghai Automotive Industry Corp., one of China's largest vehicle manufacturers, though it lost management control amid the bankruptcy protection process. ___ Associated Press writers Jae-soon Chang and Kelly Olsen in Seoul contributed to this report. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: Business Court blocks road construction in national forestsAP - Thursday, August 6 Judge approves Smoky Canyon Mine expansionAP - Thursday, August 6 Goodman to raise A$1.8 bln; agrees China dealsReuters - Thursday, August 6 Australia's Tabcorp year net profit A$521.7 mlnReuters - Thursday, August 6 Cisco earnings fall 46 pct but beat expectationsAP - Thursday, August 6 Most Popular – Business Viewed BNP Paribas bonuses spark anger in France Cupcakes for reporter on Obama's birthday Swine flu toll up sharply in Latin America US private-sector job losses rise, services sector shrinks New York chapel offers gay marriage service View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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