Daewoo says it is business as usual for staff

Daewoo has hit back at reports that they are bankrupt and instead claim it is business as usual for the 500 British-based staff.

Restructuring talks between trade unions and management in South Korea collapsed on Tuesday, and the following day the South Korean government stepped in to continue the talks, expelling the trade unions.

In a statement the motor company said; "The company debts have been frozen giving the company breathing space and the legal right to implement the restructuring regardless of union opposition.

"Daewoo Cars is a self-sufficient subsidiary that does not rely on funds from Korea, it is business as usual."

Last month Personnel Today (3 October) reported that 23 of the 500 staff at Daewoo Cars in Worthing’s technical centre quit when they were left unpaid when a possible Ford take-over collapsed.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Phone

This field is for validation purposes and should be left unchanged.

Δ

"British-based staff are stay optimistic and positive in the current situation," said a Daewoo spokesperson. "We were all paid on time last month and we envisage no payment problems in the future."

By Paul Nelson