[Courtesy of Kumho Tire]
SEOUL -- Kumho Tire's union threatened Monday to launch a partial work stoppage this week and a full one-day strike next week in protest at negotiations with China's Doublestar on selling a controlling stake in South Korea's second-largest tire maker.
The union said it would stage a four-hour strike on Friday, followed by a full strike on March 15. Korea Development Bank (KDB) opened talks last week with Doublestar on selling a 45 percent stake in Kumho Tire. The state policy bank regards Doublestar as the most reasonable alternative to minimize losses and normalize Kumho Tire's operation quickly.
In March last year, Doublestar signed a share purchase agreement to secure a controlling 42.01 percent stake in Kumho Tire but the deal broke down because of disputes over job security, the use of Kumho's brand and a proposed cut in prices.
KDB said creditors cannot extend loans forever to keep it afloat. Union leaders favored a domestic buyer, arguing Kumho Tire could follow the footsteps of GM Korea if Doublestar acquires it. GM wants a bailout after it decided to close one of its plants in South Korea.
Kumho Tire with plants in China, Vietnam, and the United States was put under a debt workout program in December 2009 due to a severe liquidity crunch. It graduated from the program in late 2014.
reporter
Lim Chang-won
cwlim34@ajunews.com
