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[Editorial] Wishes On Daewoo Union`s Reasonable Decision

[Editorial] Wishes On Daewoo Union`s Reasonable Decision

Posted May. 15, 2001 08:23,   


Since Daewoo Motor was finally dishonored in November last year, the problem of Daewoo Motor has been like a detonator of Korean economy. New decision by the `Committee for the normalization of Daewoo Motor` would be a turning point for the sale of Daewoo Motor to foreign firms.

The reason for Daewoo Motor’s dishonor was because the unionists and the employers had failed to agree on their plans for the restructuring. Since then, Daewoo Motor has virtually dissipated and has become the center of violent struggles between management and labor. Consequently, the management of Daewoo Motor has faced daily declination of moral. As a result of the adversarial restructuring, Daewoo Motor generated operating profit last month. At the moment when the hopes for the resuscitation of the company was at plain grasp, former unions chairpersons and the board members of Daewoo Motor union timely turn to support for the sale of Daewoo Motor to foreign firms. It is a significant turning point.

The executive members of Daewoo Motor`s union, however, still maintains their previous stance. It is also reported that the present leaders will send unionist delegates with do-or-die spirit to the US to express their opposition to the overseas sale of Daewoo Motor. It is hoped that the unionist will reach a reasonable decision. If their opposition does affect the sales negotiation and bring about another economic shock to Korea, they will be harshly blamed for the responsibility of the economic impact. Based on the opinion of unionist majority, the union is expected to draw a decision by a democratic process of decision-making.

The primary concern required for the decision of Daewoo Motor union is to find a method that can support the market economy theory and reduces the burden of people as much as possible. After surveying the possibility of independent recovery, if it turns out to be impossible, it is reasonable to step towards finding a bidder, if any, in Korea and also from overseas firms. It is very clear for both labor and management that they have an accurate assessment for the current situation.

Samsung Motors, which had gone through the same process as of Daewoo Motor, is now on the process of recovery after it has been sold to Renault. Despite of the Samsung Motors example, if they claim that the overseas sale is adverse to the interest of local economy, their claims are groundless.

There is not enough time to deal with the problem of Daewoo Motor. Beside the daily growing debts, plans for the company’s management need to be presented by June 15 according to the procedure of legal management. Only about a month is left to find a win-win situation. A reasonable decision of Daewoo Motor union is expected.