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22 March, 2001A protest team will try to discourage the U.S. auto multinational from taking over Daewoo.
KOREA, REP./USA: A team of Korean trade union activists is planning a visit to the headquarters of General Motors Corp. in the U.S. at the end of March or early April to protest against the auto giant's bid to take over the ailing South Korean carmaker Daewoo Motor Co.
The group -- composed of seven trade unionists from the Hyundai, Daewoo and Kia Motors trade unions, the IMF-affiliated Korean Metal Workers' Federation, the Korean Confederation of Trade Unions, and a laid-off Daewoo worker -- says it will seek to discourage the automaker from the takeover bid.
The Korean unions fear that GM's acquisition of Daewoo Motor will lead to mass layoffs. "GM is dragging its feet in the takeover negotiations, making unreasonable demands," said Cho Kun-joong, a KMWF official. "In addition, GM's condition is not good enough to acquire Daewoo, as the automaker is reportedly closing its European factories. It should drop the takeover bid for Daewoo."
The Korean trade union officials want to find out if GM is demanding the closure of Daewoo Motor's main assembly line in Pupyong, which was recommended by the Arthur Andersen multinational consulting firm. The Pupyong closure would mean an additional thousands of job cuts.
Daewoo Motor, formerly Korea's No. 2 carmaker, but now third-largest, has been surviving under court receivership since it filed for bankruptcy in November 2000, with an estimated debt of at least US$10 billion.
The group -- composed of seven trade unionists from the Hyundai, Daewoo and Kia Motors trade unions, the IMF-affiliated Korean Metal Workers' Federation, the Korean Confederation of Trade Unions, and a laid-off Daewoo worker -- says it will seek to discourage the automaker from the takeover bid.
The Korean unions fear that GM's acquisition of Daewoo Motor will lead to mass layoffs. "GM is dragging its feet in the takeover negotiations, making unreasonable demands," said Cho Kun-joong, a KMWF official. "In addition, GM's condition is not good enough to acquire Daewoo, as the automaker is reportedly closing its European factories. It should drop the takeover bid for Daewoo."
The Korean trade union officials want to find out if GM is demanding the closure of Daewoo Motor's main assembly line in Pupyong, which was recommended by the Arthur Andersen multinational consulting firm. The Pupyong closure would mean an additional thousands of job cuts.
Daewoo Motor, formerly Korea's No. 2 carmaker, but now third-largest, has been surviving under court receivership since it filed for bankruptcy in November 2000, with an estimated debt of at least US$10 billion.