Hundreds of workers at Korean car giant Daewoo's Worthing plant were today told the company does not have enough money to pay their salaries.

The car maker called in creditors at its base in Seoul a year ago and is having cashflow problems, which worsened when Ford pulled out of a possible takeover earlier this month.

About 750 workers at the Daewoo technical centre in Worthing received letters today saying they were not going to be paid this month.

A company official said: "There are no funds available for salary payments and unfortunately there is nothing we can do at the moment to pay our staff at Worthing."

Workers were given time off to contact banks and building societies to explain why their monthly salaries were not being paid and Daewoo said any interest charges would be reimbursed.

Union leaders were seeking urgent talks with the company and called on the Government to step in.

Roger Lyons, general secretary of the Manufacturing, Science and Finance Union, said: "We need to meet the company urgently to allay the obvious fears of the workforce."

Union officials attending the Labour Party conference in Brighton were also seeking help from ministers.