Ssangyong Motor (CEO Lee Yoo-il; www.smotor.com), part of the USD 16.2 billion Mahindra Group, announced on July 25ththat it has concluded a wage bargaining agreement for 2013 which was put to vote and passed with an approval rate of 60.63%.
Ssangyong recorded a fourth strike-free year of negotiations since 2010, and will focus on implementing its mid- to long-term growth strategy based on positive labor-management relations.
Ssangyong labor and management had a first meeting at the end of May 2013, and reached a tentative agreement at their 19th meeting on July 24th. The tentative agreement was passed by 2,053 votes of 3,386 with an approval rate of 60.63%.
The main content of the agreement on wages passed is Δ a base salary increase of 85,000 won, and separate agreement includes Δ TCA allowance increase for main production lines (Trim, Chassis, Assembly line) Δ reward travel for 30-year-long-serving employees Δ bus service for mourners at funerals Δ improvement of work environment for office and R&D employees.
In addition, the labor and management agreed to set up a task force in order to discuss the introduction of two consecutive daytime shifts, and agreed to conduct separate negotiations on performance-based incentives in January 2014, after the end of the current fiscal year and lawsuit over general wages in August.
The company explained that both labor and management shared the view that stable labor-management relations are the most important factor in the turnaround of the company, and narrowed their differences by each taking one step back during negotiations. Based on this peaceful settlement of wage bargaining, the company will make determined efforts to further strengthen the labor-management partnership.
In particular, it is very meaningful that the first wage bargaining with the reinstated unpaid leave workers, who came back to work in March this year, was concluded smoothly. It will be a strong foundation for Ssangyong to spur the turnaround based on sales increases and labor-management harmony.
About the salary increase despite the difficult business situation, the company explained that the decision was made to reward the employees for their dedication and hard work which has helped to normalize the company during the past four years. This has also helped to ensure the continuation of a peaceful labor-management relationship and to focus on meeting the 2013 business targets. It is also expected to inspire employees’ self-confidence and boost their motivation levels.
Mr. Lee Yoo-Il, CEO of Ssangyong Motor, said “Ssangyong has been establishing a firm foothold for business normalization thanks to the Union’s active cooperation and employees’ efforts,” adding, “We will further concentrate on labor-management harmony and Enterprise Value improvement based on the achievement of a fourth strike-free year of negotiations and positive market response.”
