Textile manufacturer Kolon Industries has ended labour union negotiations in which a 32 per cent cut in its workforce plus a 14.6 per cent wage decrease was agreed.

Kolon plans to lay off 974 of its 3,084 workers by receiving voluntary resignations until Friday, while employee bonuses will be stopped and salaries frozen.

The reduncancies are the latest in a succession of job losses announced as part of Kolon's ongoing drive to cut costs to stay in business.

The company, which is experiencing difficulty in keeping its chemical fibres business afloat, posted a loss of KRW27 million in the period between January and September 2004, compared with a loss of KRW60 billion in 2003.
Kolon Industries belongs to Kolon Group, which is South Korea's 22nd-largest conglomerate in terms of assets.