Seoul - Bankrupt Daewoo Motor yesterday ordered a 20 percent cut in its South Korean workforce and reduced overseas production as part of a radical "life or death" cost-cutting plan.
Daewoo hopes to save 900 billion won (about R5,9 billion) next year through the rescue programme, which calls for 3 500 job cuts and reduced production at plants in Europe and India.
"As the new self-rescue plan comes at a crucial time, determining the company's life or death, all staff must swallow bone-jarring pain," said Lee Jong-Dae, Daewoo Motor's new chairman.
But the Daewoo Motor labour union issued a fresh warning that the company would face worker unrest if the job cuts were carried out.
"This is absolutely unacceptable for the union. Creditors agreed in August that there will be no layoffs and the ink of the agreement has hardly dried," the union said.
"If the government and the management try to push through with it, they will face a riot by workers."