Ssangyong Motor Co's workers rejected a tentative agreement reached with management to end a strike that has caused South Korea's fourth-largest automaker to lose production of about 15,100 vehicles.

 

Of 4,994 union members who cast ballots on Friday, 62.9 percent voted against the accord reached by union officials and management earlier in the day, the company said in a statement in Seoul.

 

"This is a result of union members not fully understanding the severe instability in the business environment from intensifying competition and unfavorable market conditions," the company said in the statement.

 

The provisional agreement reached between union officials and management called for a wage freeze and a pledge not to fire workers, Bloomberg News reported. Ssangyong workers began a partial strike on July 14, followed by an all-out strike from August 14.

 

Ssangyong Motor's workers are unhappy that the agreement didn't include bonuses on performance and other benefits, which they had in previous years, the labor union said in a statement posted on its Website.

 

The automaker's workers last year ended a strike after the company agreed to increase salaries by 6.8 percent and pay a bonus of 1 million won (US$1,040) each when they returned to work, as well as three months salary as a performance bonus.

 

The workers have been demanding the company withdraw plans to fire 554 workers. They have also said the Chinese parent is taking Ssangyong Motor's technology to build engines and vehicles.

 

SAIC Motor Corp, China's biggest carmaker, bought Ssangyong Motor in October 2004 to help it build sport-utility vehicles for China, the world's fastest-growing major automotive market.

 

"We have said the company will have no choice but to go ahead with plans to fire workers because the present critical circumstances makes it hard for us to provide further proposals," the company said.

 

The automaker's workers have also challenged the company's Chinese management to keep pledges to increase production and build new models, demanding detailed investment plans.

 

Ssangyong Motor on Wednesday said it would invest 1.2 trillion won by 2009 to develop three new models and improve its after-sales services. It sells five sport-utility vehicle models and one luxury sedan.

 

Demand for diesel SUVs made by Ssangyong Motor and other automakers weakened after the government last year raised taxes on the fuel.

 

(Shanghai Daily August 28, 2006)