M&M's Ssangyong dilemma
While the recently bagged South-Korean SUV maker, Ssangyong Motors has been the talk of the automotive town in the country, the fact of the matter is, M&M has clarified at the outset that it has no commitments towards the labour of the company.
It is to be mentioned here that the company has faced labour issues in the past as well and as the company has said that it has no commitment on retaining jobs or volume growth in its deal with SsangYong Motor, it is expected that that a similar scenario will be faced by M&M as well in the coming times.
Pawan Goenka, president, automotive & farm equipment division, M&M said that the MoU signed by the two parties only honors the current wage agreement with the union.
It may be noted here that the company is in a process of due diligence and has already paid 5% of the total money of the deal.
In fact, its last owner, the Chinese automotive firm, SAIC was not able to turn around the business of Ssangyong because of the rift among the management and the union.
