No commitment on retaining Ssangyong staff Jakub Voracek Olympics Jersey , says M&M Posted On : Sep-06-2010 | seen (216) times | Article Word Count : 306 |
Mahindra & Mahindra, one of the largest car makers in the Indian market, has reportedly not made any commitment regarding retaining the old employees of the company in ongoing deal with the bankrupted South Korean firm Ssangyong Motor. Mahindra & Mahindra Vladimir Sobotka Olympics Jersey , one of the largest car makers in the Indian market, has reportedly not made any commitment regarding retaining the old employees of the company in ongoing deal with the bankrupted South Korean firm Ssangyong Motor. According to industry reports, the memorandum of understanding (MoU) which both the companies signed last month has a condition of honoring the current wage agreements to which Ssangyong has signed with its worker unions. According to Mr Pawan Goenka Tomas Plekanec Olympics Jersey , president, automotive & farm equipment division, M&M David Pastrnak Olympics Jersey , the MoU between the two companies, signed on August 23, only offers to 鈥渉onour鈥?the current wage agreements that Ssangyong has signed with its unions.
Besides this Ondrej Palat Olympics Jersey , the MoU doesn't include any commitments related to the growth of the volume and employment of this Korean firm. Mr Goenka added that M&M鈥檚 MoU with Ssangyong honours the current wage agreement that the company has with the unions and Mahindra will hope to grow employment as the volume grows though the company has no specific commitments.
Looking at the history of the Ssangyong Motors that has been thrilled with a series of labor problems, the issue becomes considerably important for the Indian auto giant. However, the company is understood be taking this matter with great concern and is expected to be closely monitoring the labor issues Milan Michalek Olympics Jersey , same as Tata did at the time of the acquisition of the British luxury car makers JLR.
It is to be mentioned here that, M&M has recently got the 'preferred bidder' status in the acquisition of this ailing South Korean firm. It is expected that the final process of the acquisition will take another 3 to 4 months to complete. It is expected that Mahindra will launch the global portfolio SUVs of Ssangyon in the Indian market after the completion of the acquisition process.
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