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29 October, 2000Company trade union refuses any layoffs at the bankrupt carmaker.
KOREA, REP: The trade union at Daewoo Motors has announced it will strike if the bankrupt carmaker lays off any of the company's workforce of 13,000.
The survival of the company is now dependent on a restructuring plan imposed by its creditor.
The union, fearing jobs cuts, has opposed the sale of the former No. 2 Korean carmaker to General Motors and its partner Fiat and has been pushing the government to nationalise the financially troubled company, but the government says this would be contrary to market reforms. A proposed deal by Ford Motor Company to buy Daewoo Motors fell through.
The expected sale of Daewoo Motors follows the collapse of the Daewoo Group in mid-summer 1999, with debts of some $70 billion.
The survival of the company is now dependent on a restructuring plan imposed by its creditor.
The union, fearing jobs cuts, has opposed the sale of the former No. 2 Korean carmaker to General Motors and its partner Fiat and has been pushing the government to nationalise the financially troubled company, but the government says this would be contrary to market reforms. A proposed deal by Ford Motor Company to buy Daewoo Motors fell through.
The expected sale of Daewoo Motors follows the collapse of the Daewoo Group in mid-summer 1999, with debts of some $70 billion.