“If this opportunity is missed, Ssangyong Motors will no longer be able to revive and no one will invest. Ssangyong’s labor and management should consult with the idea that it is the last chance to receive government support.”
Korea Development Bank Chairman Lee Dong-geol made this announcement on the issue of Ssangyong Motor’s additional support at an online New Year press conference held on the afternoon of the 12th. Depending on the results of Ssangyong Motor’s investment attraction, creditors can review whether or not to provide support, but it is a message that labor and management must share the pain for this.
In particular, Chairman Lee Dong-geol said that the Ssangyong Motors union should promise to increase the validity period of the collective agreement to three years and to stop any industrial action until it makes a surplus.
“Ssangyong Motor’s union must promise to stop strike before support is possible”
On this day, Chairman Lee Dong-geol suggested the possibility of additional support for Ssangyong Motors. After reviewing the results of negotiations currently underway with potential investors, it is explained that if business feasibility is recognized, the corresponding loan can be provided.
Chairman Lee Dong-geol said, “It is difficult to disclose details, but I know that Ssangyong Motor is negotiating a new investment. After the investment is made, if the company requests support from the creditors, we will review the business feasibility and consider various support measures including additional investment. “He said.
Next, he added to Ssangyong Motors, “The union should consult with potential investors to create a result that will ensure the company’s viability, and request a business feasibility evaluation based on this.”
This reaffirms Ssangyong’s existing position that it will only consider additional support if it acquires new investors and profitability improves.
However, Chairman Lee Dong-geol said, “If it becomes insolvent once again, the labor and management should make up their minds with the idea that Ssangyong Motor will end,” and said, “We should faithfully engage in consultations according to the principle of sharing pain with stakeholders.
“The union should promise to increase the validity of collective agreements from 1 to 3 years and stop any industrial action until it makes a surplus,” he said. “If two conditions are not prerequisite along with the business feasibility evaluation, the Korea Development Bank will only pay 1 Won’t even apply for it,” he drew a line. This is because it is no longer acceptable for restructuring companies to disrupt business normalization due to strikes.
Chairman Lee Dong-geol dismissed, “I am not trying to unilaterally persecute the union, but to strengthen my determination to save Ssangyong Motor.” and dismissed “I think that this should be promised as the automobile industry is not an easy field.”
“Korean Air-Asiana integrated cruise…expected to normalize in 2022”
Chairman Lee Dong-geol also revealed the progress on the integration of Korean Air and Asiana Airlines. “There is no big difficulty,” he said. “I know that we plan to submit business combination declarations to 16 countries in January.”
He added, “The two companies merged under the assumption that the aviation industry would normalize in the summer of 2022.” did.
Regarding the possibility of the EU and other competing authorities not to be allowed to merge, “Korean Air and Asiana Airlines are among the top 10 in the world even if they are integrated, and most of them focus on metropolitan cities.” There will be no room for it,” he predicted.
In addition, regarding the negotiations with the Asiana Airlines union, he promised, “I will try to reflect their position,” saying, “The working-level team interviewed with the three unions in December last year, but they are not being assembled because of their different positions.”
In the case of Asiana Airlines, he repeatedly emphasized that there will be no restructuring according to the integration, saying, “In the case of Asiana Airlines, a lot of core maintenance personnel have been exhausted so far, so we have received reports that if the number of personnel is no longer reduced, it will cause safety problems.”
At the same time, Chairman Lee Dong-geol criticized the objection of the National Pension Service to the change of the articles of association of Korean Air for integration, saying, “I am suspicious of raising an objection even though the value of the stake is expected to increase a lot.”
In particular, he pointed out that the merger decision was made without due diligence. “As Korean Air is a company operating in the same type of business, you can guess a lot from the data.” He also refuted.
“Addition of’employment stability’ to the mountain bank law?…need to discuss”
In addition, Chairman Dong-geol Lee also clarified his opposition to the proposed amendment to the Bank of Korea Act, which adds “advancing employment stability” to the purpose of establishing the KDB by some members of the Democratic Party.
Chairman Lee Dong-geol said, “For restructuring, flexibility in manpower or wage cuts is necessary. If the contents of the bill are misunderstood as an employment obligation clause, restructuring becomes quite difficult.”
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“Restructuring is not carried out alone, but through consultations with creditors, and there are cases in which it is filed with the World Trade Organization (WTO) because it can make a difference with other banks and is not a commercial method.”
At the same time, “Employment stability can be viewed from a long-term or short-term perspective and aspects of a company or industry as a whole. Focusing on short-term employment stability can harm long-term stability,” he said. “A deep discussion on the bill is necessary.” Showed.