The labor union of troubled Ssangyong Motor Co. said Friday it has called thousands of its members to strike against a massive job-cut plan, which the company says is necessary for a survival.
Ssangyong, under bankruptcy protection and 51% owned by China's top automaker Shanghai Automotive Industry Corp. (SAIC), said it would slash 2,646 jobs, or 37 per cent of its total workforce, to prove its viability.
The job-cut plan, announced on Wednesday, marked the first large-scale layoffs by a South Korean company since the global economic crisis depressed sales of domestic automakers in late last year.
Walloped by collapsing sales and dwindling cash reserves, Ssangyong was forced to seek bankruptcy protection in January after SAIC abandoned it without showing any major effort to save its affiliate.
