Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : URUGUAY, en Español. Pais Peligroso. -- Ignore unavailable to you. Want to Upgrade?

To: Elio Madama who wrote (439)	2/16/2001 5:58:42 AM
From: Elio Madama	Respond to of 505

MORE LAID OFF. (COMTEX) B: Daewoo Motor sheds 1,751 workers B: Daewoo Motor sheds 1,751 workers SEOUL, South Korea, Feb 16, 2001 (AP WorldStream via COMTEX) -- Daewoo Motor Co. laid off 1,751 workers Friday to make the ailing carmaker more salable to General Motors Corp. of the United States. Unionized workers planned to go on strike to protest the largest layoff in years. Daewoo Motor, the nation's No. 3 carmaker, fired the workers immediately after last-minute negotiations with its labor union broke down over how to restructure the company and save it from bankruptcy. "We have sent dismissal notices to 1,751 workers. With it, we have now completed our workforce restructuring," said Kim Sang-won, a company spokesman. The government of President Kim Dae-jung considers layoffs a bitter pill to revamp the nation's bloated big businesses and regain investors' confidence in the economy. The 1997-98 Asian financial crisis resulted in the collapse of Daewoo Motor and many other businesses that had recklessly expanded on borrowed money. Friday's layoffs were the largest since South Korea revised its labor law in late 1997 to make it easier for businesses to lay off workers. But layoffs are anathema to workers, accustomed to lifetime employment. "We will fight layoffs with all possible means," said Choi Jong-hak, a spokesman for Daewoo's labor union. Friday's layoffs came after work hours. Workers at Daewoo Motor's two major plants in southern South Korea were expected to go on strike Monday when their plants reopen. Together, the two plants can produce 500,000 cars and 46,000 commercial vehicles a year. Daewoo's main plant in Bupyong, 30 kilometer (18 miles) west of Seoul, with an annual capacity of 500,000 cars, has been closed since Thursday. The management said the temporary shutdown, which will remain effective until March 6, was meant to reduce bulging inventory of unsold cars. But it was also seen as an attempt to prevent striking workers from rallying inside the company premises. Daewoo Motor has been surviving under court receivership since it filed for bankruptcy in November with estimated debts of dlrs 10 billion. In return for emergency loans from creditor banks, Daewoo Motor had promised to shed 5,494 of its 16,149 workers, or 34 percent, by Friday to make the bankrupt carmaker more attractive to foreign investors. Until Friday, 3,700 workers have resigned voluntarily. Management expected the layoffs to accelerate takeover negotiations with GM. The U.S. auto giant began talks with Daewoo in September, but little progress has been made as GM reportedly was reluctant to proceed without layoffs. During Friday's talks, labor leaders suggested that workers go on unpaid four-month leaves to help the company turn around. But management insisted on layoffs as essential to reviving the heavily indebted firm. On Wednesday, the government-run Korea Development Bank, Daewoo Motor's main creditor, said banks will not extend new loans to Daewoo Motor if it fails to complete layoffs. Such an action will force the court to end receivership and liquidate the carmaker. Credit banks provided Daewoo Motor, a flagship affiliate of Daewoo Group, with dlrs 144 million this year in emergency loans to keep the company afloat. They planned to infuse a further dlrs 584 million to the carmaker by June. By JAE-SUK YOO Associated Press Writer Copyright 2001 Associated Press, All rights reserved -0- APO Priority=r (PROFILE (WS SL:BC-SKorea-Daewoo, 1st Ld-Writethru; CT:i; (REG:EURO;) (REG:BRIT;) (REG:SCAN;) (REG:MEST;) (REG:AFRI;) (REG:INDI;) (REG:ASIA;) (REG:ENGL;) (LANG:ENGLISH;)) ) KEYWORD: SEOUL, South Korea Eds: UPDATES thruout with negotiations breaking down; layoffs; CHANGES overline; trims; New to some points. AP Photos yoo/choe-js * end of story * (REUTERS) This is a test - please ignore This is a test - please ignore Test REUTERS * end of story *