(2nd LD) Riot police confront striking workers at Ssangyong plant

(ATTN: UPDATES throughout with new development, details, minister's quote; AMENDS
headline; TRIMS)
PYEONGTAEK, South Korea, July 20 (Yonhap) -- Thousands of riot police moved into
the plant of the troubled Ssangyong Motor Co. on Monday to end a two-month
occupation by some 1,000 fired workers.
No clash or injuries have been reported. About 3,000 police wearing helmets and
holding plastic shields were confronting the striking workers in front of a
painting facility inside the plant.
Some workers flung nuts and bolts from slingshots at the police as they made
their approach.
"If police were to move in, they will pay the price," a Ssangyong labor union
member said over a loudspeaker.
About 3,000 current Ssangyong workers were also mobilized at the plant in
Pyeongtaek, about 70km south of Seoul, to try to resume production.
The police move is the first court-approved action to forcibly disperse the
striking workers, who have occupied the plant since May 21 to protest a massive
job-cut plan.
The prolonged strike, which has cost Ssangyong 230 billion won (US$183.2 million)
in lost production, is significantly clouding the outlook for the company's
survival.
Also Monday, Knowledge Economy Minister Lee Youn-ho warned that Ssangyong may go
bankrupt if the strike continues.
"The possibility of Ssangyong Motor's survival is seen as very low," Lee told
lawmakers at a breakfast meeting in Seoul. "If production stoppage continues, the
insolvency of Ssangyong Motor will be unavoidable."
With no end to the strike in sight, Ssangyong asked the court to order police to
disperse the striking workers. The request was approved early this month.
Last week, police took preparatory steps to move into the plant, using forklifts
to remove shipping containers and other barriers set up at the plant's four main
gates.
Cho Hyeon-oh, head of the Gyeonggi Provincial Police Agency, hinted that police
could move into the painting facility -- where many inflammable materials are
stored -- to evict the striking workers.
"All options are on the table," Cho said during a press briefing when asked
whether police would enter the facility.
In February, Ssangyong received bankruptcy protection in exchange for
implementing a turnaround plan that calls for 36 percent of its workforce, or
2,646 employees, to be cut.
Since then, some 1,670 workers have left the company through voluntary retirement
plans, while the remaining 976 workers have gone on strike.
In the first six months of this year, Ssangyong's auto sales plunged 73.9 percent
from the same period last year to 13,020 units.
Ssangyong is still 51 percent owned by China's Shanghai Automotive Industry Corp.
But the Chinese parent lost its management control after Ssangyong entered
bankruptcy protection.
(END)