ID :
49394
Sat, 03/07/2009 - 00:17
Auther :
Shortlink :
https://www.oananews.org//node/49394
The shortlink copeid
Cash-starved GM Daewoo to cut employee benefits
SEOUL, March 6 (Yonhap) -- Unionized workers at the South Korean unit of
beleaguered U.S. automaker General Motors Corp. voted in favor of a plan to slash
employee benefits, GM Daewoo Auto & Technology Co. said Friday.
The move came as GM Daewoo, the third-largest carmaker in South Korea, is seeking
one trillion won (US$643 million) in emergency funding from its main creditor,
state-run Korea Development Bank, to help it stay afloat.
The cuts will affect mid-term settlement of retirement pay, athletic and
membership meetings, summer vacation camps and payment for fixed annual leave, GM
Daewoo said in a statement.
Among the 9,998 workers who voted, 85 percent supported the plan, according to
the statement.
The company did not specify how much it would save from the latest cost-cutting
scheme.
Officials at GM Daewoo weren't immediately available for comment.
"This agreement reflects the strong commitment of all GM Daewoo team members to
work together as we manage the company during these very difficult economic
conditions brought on by the global financial crisis," GM Daewoo Chief Executive
Officer Michael Grimaldi was quoted as saying in the statement.
GM Daewoo has already reached its credit limit of 1.37 trillion won from the
state-run bank and the carmaker has $750 million in loans coming due in October,
analysts say.
Early last month, Grimaldi asked the South Korean government to provide financial
support, though his request was turned down by government officials amid fears of
a potential bankruptcy at GM.
In the first two months of this year, GM Daewoo's vehicle sales plunged 42.4
percent to 88,550 units.
So far, GM has received $13.4 billion from the U.S. government in return for a
pledge to conduct massive layoffs and plant shutdowns.
The viability of the Detroit auto giant, however, remains in question. According
to a report by The Financial Times earlier in the day, GM's auditor DeLoitte &
Touche expressed "substantial doubt" about the automaker's ability to stay
operational, citing its continued losses.
(END)
beleaguered U.S. automaker General Motors Corp. voted in favor of a plan to slash
employee benefits, GM Daewoo Auto & Technology Co. said Friday.
The move came as GM Daewoo, the third-largest carmaker in South Korea, is seeking
one trillion won (US$643 million) in emergency funding from its main creditor,
state-run Korea Development Bank, to help it stay afloat.
The cuts will affect mid-term settlement of retirement pay, athletic and
membership meetings, summer vacation camps and payment for fixed annual leave, GM
Daewoo said in a statement.
Among the 9,998 workers who voted, 85 percent supported the plan, according to
the statement.
The company did not specify how much it would save from the latest cost-cutting
scheme.
Officials at GM Daewoo weren't immediately available for comment.
"This agreement reflects the strong commitment of all GM Daewoo team members to
work together as we manage the company during these very difficult economic
conditions brought on by the global financial crisis," GM Daewoo Chief Executive
Officer Michael Grimaldi was quoted as saying in the statement.
GM Daewoo has already reached its credit limit of 1.37 trillion won from the
state-run bank and the carmaker has $750 million in loans coming due in October,
analysts say.
Early last month, Grimaldi asked the South Korean government to provide financial
support, though his request was turned down by government officials amid fears of
a potential bankruptcy at GM.
In the first two months of this year, GM Daewoo's vehicle sales plunged 42.4
percent to 88,550 units.
So far, GM has received $13.4 billion from the U.S. government in return for a
pledge to conduct massive layoffs and plant shutdowns.
The viability of the Detroit auto giant, however, remains in question. According
to a report by The Financial Times earlier in the day, GM's auditor DeLoitte &
Touche expressed "substantial doubt" about the automaker's ability to stay
operational, citing its continued losses.
(END)
