Daewoo to Cut Jobs; Unions Threaten Strike

Creditors of Daewoo Motor Co. disclosed plans to eliminate nearly 2,800 jobs, or 22% of the work force, by the middle of next month to make the South Korean auto maker a more appealing takeover candidate. The union representing Daewoo workers responded by voting to strike at a date to be picked later. "The management earlier promised to consult with the labor union on layoff plans," said Choi Jong Hak, a spokesman for Daewoo's labor union. Daewoo Motor, the nation's third-largest car maker, is operating under court receivership, and creditors are pushing for a sale to General Motors Corp. To improve chances for the sale, creditors pushed plans to eliminate 5,498 blue-collar jobs. About 2,704 workers quit voluntarily, and creditors announced plans to shed 2,794 more workers of the total work force of 12,844 by Feb. 16.