The labor and management of SsangYong Motors agreed to reinstate 119 dismissed workers by the first half of next year, ending the prolonged dispute over the firm’s mass dismissal of them, according to the company on Friday.

“We agreed to reinstate the laid-off workers in order to solve social problems and for the company to take off,” said the statement jointly released by the company’s union and management. 

Under the agreement, SsangYong will hire 60 percent of the 119 sacked workers by the end of this year and the remaining 40 percent by the first half of next year.

SsangYong Motors’ plight began in 2008 when the global financial crisis struck, driving the company into financial difficulties.

The following year, the firm filed for bankruptcy and decided to reduce staff levels by 2,600 employees, 36 percent of the total workers. In May of 2009, 1,700 employees chose voluntary redundancy and 454 workers chose to apply for leave of absence without pay. The company fired another 165 employees, who refused to choose either option, though final staff cuts were short of its plans, reaching 2,319.

Since 2011 when Mahindra & Mahindra bought SsangYong Motors, the firm has gradually reinstated the laid-off workers.

By Shin Ji-hye (shinjh@heraldcorp.com)