first_imgRelated posts:No related photos. 500 staff left unpaid as takeover collapsesOn 3 Oct 2000 in Personnel Today The HR team at a Daewoo design plant had to resort to desperate measures last week when the troubled motor firm was unable to pay 500 staff.Fiona Macpherson, HR manager at the Worthing Technical centre where Daewoo’s cars are designed and developed, said staff had to organise emergency funds for those in dire financial straits. The personnel team had to arrange time off for employees so they could explain their problems to their banks and building societies. She said: “We have reserve funds for those in really desperate situations – we are still waiting to find out when the money will be sent through.MSF spokesman Dave Fleming said that staff at the site were doing a competent and brilliant job but said there is now no agreed pay day at the plant, adding that this is the fourth time employees have not been paid on time this year. The cash flow problems were caused by car giant Ford’s withdrawal from a £4.72bn takeover of the insolvent Korean carmaker.Daewoo is now renegotiating with the Korean Development Bank to allow the payments to go ahead. The bank has been supporting the car company since it plummeted into a financial crisis two years ago. Previous Article Next Article Comments are closed. last_img read more