Ssangyong union members OK wage agreement

Ssangyong Motor announced yesterday that its labor union has approved a wage agreement reached Wednesday after the 19th round of negotiations.

Ssangyong’s management and union had their first meeting on May 23. The agreement was approved by a vote of 2,053 to 1,333.

By finalizing the agreement, Ssangyong, now part of India’s Mahindra Group, recorded its fourth consecutive strike-free year.

According to the automaker, the agreement provides an 85,000 won ($76.16) monthly increase in base salary, which the company said was to reward employees for their dedication and work over the past four years and to ensure their focus on achieved 2013 goals.

The agreement raises pay for jobs on the main production lines (trim, chassis, assembly), establishes reward travel for 30-year employees, offers bus service for mourners at funerals and improves working conditions for office and R&D employees.

In addition, the company said the management and union agreed to set up a task force to discuss the addition of a second shift and performance-based incentives.

“The labor union and management shared the view that a stable labor-management relationship is the most important factor in turning around the company,” the automaker said in a release. “Based on this peaceful settlement, the company will make every effort to further strengthen the labor-management partnership.”

Ssangyong added it is meaningful that the first wage bargaining since the reinstatement of unpaid leave workers in March went smoothly.

Ssangyong was the only local automaker in this first half of the year to report an increase in domestic sales - 34.1 percent year-on-year. Foreign sales also were up 8.4 percent.

“Ssangyong has been establishing a firm foothold for business normalization,” said Ssangyong CEO Lee Yoo-il.

BY JOO KYUNG-DON [kjoo@joongang.co.kr]