HUNDREDS of workers at the main UK factory of Korean car giant Daewoo faced further uncertainty yesterday after learning that the troubled company did not have enough money to pay their wages.

About 750 staff at the Daewoo Technical Centre in Worthing, West Sussex, yesterday received letters explaining that new funding arrangements with the group's creditors were under way following a breakdown of negotiations for a takeover by Ford.

The Korean conglomerate was placed under a restructuring programme a year ago after reporting debts of billions of pounds.

Staff at the Worthing facility were given time off yesterday to explain to their banks and building societies why their monthly salaries were not paid into their accounts. It was the fourth time in recent months that salaries were not paid on time.

Manufacturing Science and Finance Union officials are seeking urgent talks with the company and with Trade and Industry Secretary Stephen Byers to see what the Government can do to help.

MSF regional officer Dave Fleming said the skilled technicians, designers, computer analysts, and other craftsmen, who earned up to #30,000 a year, now feared for their future.

A company official said there were no funds available from Daewoo's base in Seoul to pay salaries on time.

It was reported in 1997 that the Korean industrial conglomerate was seeking a site in Scotland for an 800-job glass plant despite the economic crisis engulfing South Korea at the time, and after rejecting sites in Scotland the previous year. However, the move never materialised.

Daewoo turned car retailing on its head in the UK in the mid-90s when it introduced a direct sales operation. As part of the revolutionary idea, staff did not work on commission and never initiated sales talk.

Potential customers were invited to browse around a range of cars, decide on what specification they required, and get a print-out of the whole transaction, including insurance and finance package costs. New car prices were fixed and non-negotiable.

At its peak in 1996, Daewoo operated 16 car retail outlets in Scotland, including at Seafield Road in Edinburgh, and at Yorkhill Quay in Glasgow.

Staff at the Glasgow outlet were working as normal last night. They declined to comment on developments, referring all inquiries to a public relations officer in Watford.