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Daewoo Motor to cut 5,374 workers

Posted December. 19, 2000 13:41,   


The management of Daewoo Motor Co. notified the labor union of its final self-rescue plan, including a measure to reduce manpower in the production field by 5,374 workers through January next year.

In the meantime, the labor union said at a press conference Monday that it would go on a general strike if the management implements the plan unilaterally, showing signs of a labor clash again on structural adjustment.

Details of the plan:

The number in the final layoff, which was in controversy, was reduced sharply by announcing the manpower reduction in the production field only. The manpower in Pupyong and Kunsan factories will be reduced by 3,154 and 1,200 respectively under the principle of one shift.

About 200 temporary workers will have to quit the Changwon Factory. Daewoo Motor will turn over 600 workers in the Ssangyong Motor maintenance business sector, who were transferred to Daewoo from Ssangyong in the process of the merger, to Ssangyong Motor Co. again.

In the case of office workers, management has decided to cut the staff by 900-1,000, and the issue will be discussed later with the labor committee of office workers. As a result, a total of 6,300 employees will be cut according to the plan.

Labor-management disputes return:

A key reason behind the Daewoo Motor management¡¯s notification of the self-rescue plan to the labor union is to achieve visible results of its structural adjustment through the end of January.

Inchon District Court said threatened, ¡°The court will make a decision on whether to place Daewoo Motor Co. under court receivership or not based on the fact-finding results worked out by Young Wha Corp. in January next year.¡± However, the labor union protested strongly, calling the announcement a unilateral notification.

¡°The self-rescue plan worked out by management has no hope for Daewoo Motor to be developed independently,¡± Kim Il-Sup, head of the labor committee, said. ¡°Accordingly, it should be abolished totally.¡±

Ha Im-Sook artemes@donga.com