Daewoo’s Paying Back Out of Gratitude

“Let’s donate the rest of the money for disaster relief operation.”

“No, workers with our affiliates have not been paid for months.”

On September 11, 2002, at the Boopyong Plant of GM Daewoo Motor Co. was held a meeting of representatives of a body representing white-collar workers thereof.

The only agenda of the meeting run for almost 3 hours was: how to dispose of the 945 million won (circa. $850,000) left from giving severance payments to the workers who quit or got laid off. Last January when the last group of workers left the company without any severance payments, the co-workers remaining in the company chipped the half of their bonuses. Thus, 8 million won was given to each of the laid-off, and the amount mentioned above is left. Daewoo employees, whose average salary is 30% lower than those for the workers in other companies, argued for equal distribution of the money back to those who chipped in. That was the dominant opinion.

However, no representative opposed donating the rest for disaster relief purposes. Chairman Lee Chang-sup confirmed, “Contrary to my expectation, most of our representatives voted for donation of the whole amount of money. I myself got surprised.”

But throughout the meeting, people got to agree to donation of the 30% of the money. Since they received the bonuses when their company was under the court’s management, thus the creditor banks paid for the bonuses. At the same time, workers working for Daewoo affiliates have not been paid for months. Thus, the representatives selected the middle-of-the-road approach.

Thus, GM Daewoo Motor Co. donated 300 million won in total with 285 million won from the fund and the rest of the donation chipped in by directors.

But the secretary general of the body, Yoo Kang-suk said, “Our company is a beneficiary of the public fund. It’s our first effort to pay back what we have received from the society. GM Daewoo will be born again as a corporation serving the public.”

Rae-Jeong Park ecopark@donga.com