Brand Confucian

Ssangyong union laborers protest layoffs

Asia Economy had the following story on public sentiment regarding the Ssangyong motors fiasco. Once again, everything in blue is my translation. Black text is commentary.

A public survey reveals that 80 percent of Korean citizens opposed governmental use of force in the Ssangyong motors bankruptcy incident.

According to a telephone survey of 1,000 men and women conducted June 15-16 by Hankil Research on behalf of the ‘National Commission for the Proper Restoration of the [Korean] Auto Industry,’ 79 percent of respondents “oppose the use of force at the [Ssangyong] bankruptcy. Those in support of using force numbered 17 percent.

70 percent of respondents indicated that, regarding the current situation, “the government is most responsible because it allowed Ssangyongs sale to Shanghai motors which stole the subsidiary’s technology without any making any investment in the local firm.” Shanghai motors was the largest culprit for 19.9 percent of respondents, and the workers union was faulted by 13.2 percent of respondents.

Twice the number of people (63.1%)opposed resolving the company’s problems through labor firings and layoffs as supported (31.1)such measures.

On whether or not public funds should be used to [bailout] Ssangyong through nationalization opposing opinions stood taughtly at 45.3 percent for and 42.6 percent against.

This survey had a 95 percent reliability with a ±3.1% standard error.

Reporter Hyeshin Ahn (안혜신) ahnhye84@asiae.co.kr

Is it sad that Ssangyong motors is going through bankruptcy and has to lay off a bunch of its factory workers? Most certainly. But layoffs are sometimes necessary to keep a company afloat. Companies need to be able to downsize when they’re in a crunch, without fearing psychotic labor unions.

And as for the whole thing being the fault of government? Well that is just more protectionist bull-shit.

Ssangyong management knew, or damned well should have known, what they were getting into when they decided to sell their shitty little company to Shanghai motors. I’m sick of hearing this load of turkey shit about how Shanghai didn’t invest any money and stole Korea’s technology. That’s not necessarily how it works people. I’m sure Shanghai motors invested all they were planning to invest on the initial purchase. After that, they saw it as local management’s job to get their act together and make the company profitable again.

It may sound harsh, but it’s a perfectly legitimate way to do business. Not to mention the international model. As a subsidiary, Ssangyong was responsible for turning a profit and repatriating it to Shanghai. That’s the way it works my friends. As for stealing technology, how can you steal something you’ve legitimately purchased?

Responsibility for the failure of Ssangyong lies chiefly with the local management, then Shanghai motors.

Responsibility for the current labor fiasco also lies with local management – they fucked up communication with their employees and have just been total idiots about their labor policies – but mostly with the labor union. Again, the government is off the hook.

All of this aside, the human suffering aspect of this story is what is most tragic. These poor workers, through no fault of their own, have lost their jobs - truly a travesty. But to make matters worse, they are lied to and rallied by a self-serving, vindictive, un-productive, and un-principled labor union that on the whole is serving as the biggest obstacle for business to move forward and the laborers to find new work.