Taipei Computer Association urges Ma and Hsieh to raise foreign worker ratio

The Taipei Computer Association (TCA, 台北市電腦公會) yesterday presented a petition to presidential candidates Frank Hsieh (謝長廷) of the Democratic Progressive Party (DPP) and Ma Ying-jeou (馬英九) of the Chinese Nationalist Party (KMT), urging them to allow more foreigners to enter the workforce.

TCA chairman Wang Jen-tang (王振堂), standing convener of the board of supervisors John Hsuan (宣明智) and standing member of the board of directors Ray Chen (陳瑞聰) said the rising cost of operations in China could motivate Taiwanese businesses to return if the foreign labor employment ratio is raised to more than 60 percent.

Wang said the TCA could influence 1 million votes in next month's presidential election through its member companies and associated manufacturers, their employees and workers' families.

After Wang's statement, both camps appointed staff to look into the proposal.

Wang said limitations on foreign labor are forcing businesses, including high value-added industries such as pharmaceutical manufacturing, to move to China.

With operational costs on the rise in China, the time is ripe for a new export-processing zone, Wang said.

The TCA has calculated that the ration of foreign labor must be increased to 60 percent to persuade Taiwanese businesses to return from China. This leaves 40 percent of the employment opportunities to locals, which would be sufficient to boost the economy significantly once companies begin returning.

Chen said that the implementation of the Labor Contract Law (勞動合同法) in China raised operational costs there considerably. Workers wages paid by Walton Advanced Engineering (華東) rose from 750 yuan (US$105) to 850 yuan, he said, not including an additional 8 percent property purchase bonus.

With factors such as taxation and foreign exchange, businesses face up to a 30 percent rise in costs, the TCA said.

Meanwhile, many industrial facilities stand empty in Taiwan. If foreign labor policies are relaxed or workers wages lowered, businesses could return, it said.

Wang said that an international business' headquarters is mobile, but Taiwan must beat out competition from Singapore, Malaysia and Vietnam to win them. The TCA said the government should offer tax incentives, adding that infrastructure and a time line for opening the three direct links with China are also essential.

Chen Yi-min (陳益民), Director General of the Bureau of Employment and Vocational Training (職訓局), said that foreign workers are entitled to the same wage as domestic workers. Any changes would involve amending the Labor Standard Act (勞基法).

At the same time, lowering wages for foreign workers could violate the International Labor Code, Chen Yi-min said.

Chen Yi-min also said that lowered wages for foreign workers could cause a backlash through concern over competition.