Daewoo FSO shareholders agree to cut employment by 25%

The shareholders of Daewoo-FSO, the Polish subsidiary of the ailing South Korean automotive group, agreed to lay off 1294 out of the company's 4900 employees. The decision has received support from the Treasury Ministry, which holds a so-called 'golden share' in the company and can block decisions on mass staff reductions. As reasons for the move, the Treasury's press office listed Daewoo-FSO's excessive employment dating from the time before it was privatized and the crisis on Poland's car market. "The management and workers believe the decision to carry out group lay offs and continue deep restructuring will have a positive impact on Daewoo-FSO's image in the eyes of its clients and creditors in Poland and Korea," said the company in a statement. Daewoo-FSO will take substantial measures to help laid off workers, which aside from severance packages will include hiring a personnel consultancy to find new jobs for them. The company also plans to exclude from the lay-offs employees who have been with the company for more than 30 years as well as those who are sole providers for their families. (Gazeta Wyborcza, Feb. 24-25, p.24, Reuters) T.J.