Clashes erupt at South Korea car plant

[Courtesy of cde John L -- May his tribe increase!]

South Korean riot police backed up by armour and helicopters, have clashed with hundreds of sacked auto workers who have been holed up in a car factory outside of Seoul for almost two months. Several of the protesters used high-powered slingshots to fire nuts and bolts at police from factory rooftops as they tried to storm the Ssangyong motors car plant on Tuesday. Some 3,000 riot police have been deployed to the plant at Pyeongtaek, about 70km south of Seoul, in an effort to clear up to 600 sacked workers who have occupied the factory's paint shop.

Ssangyong is South Korea's fifth-largest automaker and the occupation which began in late May has paralysed production at the plant. Police first entered the factory on Monday after the company cut off water and gas supplies to the plant in an effort to force the workers to leave. As they did so, protesters tried to block their path by setting light to vehicles and tyres while pelting police with shrapnel from catapults.

Job cuts

The workers began their occupation on May 21 in protest at job cuts designed as part of a restructuring plan to save the troubled carmaker. Ssangyong, which is majority-owned by Shanghai Automotive Industry Corp., has been in court-approved bankruptcy protection since February. South Korean media reports have said the paint shop, where most of the protesters are holed-up, contains flammable materials that could potentially ignite amid a major clash.

As part of its restructuring plan, Ssangyong aims to shed 36 per cent of its workforce or about 2,646 jobs. According to the company, some 1,670 have left the company voluntarily, but nearly 1,000 opposed the move and some were later fired. Ssangyong mostly manufactures light SUVs and a luxury sedan – sales of which have plummeted in the global economic downturn.

The company sold 13,020 vehicles during the first six months of the year, down 73.9 percent from the same period in 2008, according to South Korea's Yonhap news agency. Government officials have warned that unless the occupation of the factory ends and production resumes, any hope of saving the company will evaporate.