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Nanya announces partial canceling of forced unpaid leave

Nanya Technology Corp (南亞科技), the nation’s second-biggest maker of computer memory chips, will partially cancel its practice of involuntary unpaid leave on June 1, a local newspaper reported yesterday.

Bigger rival Powership Semiconductor Corp (力晶半導體), meanwhile, said it had cut the number of days it forces employees to take as unpaid leave from four to four a month since the second half of this month, the Chinese-language United Evening News said.

The two companies’ announcements came a day after Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, announced on Wednesday that it wanted to rehire all laid-off workers on June 1, which has created a ripple effect on other high-tech companies.

An unidentified Nanya worker told the newspaper that the company, which asked employees to take four days of unpaid leave per a month starting at the beginning of this year, had announced the cancellation of the practice starting on June 1.

But Nanya said in a statement that it changed the practice of unpaid leave only for the so-called “indirect employees,” including project planning personnel. As for “direct employees,” such as those working on production lines, they are still subject to eight days off each month without pay, the company said.

Powerchip also said yesterday that it had decided to reduce the number of unpaid days off because the company was upbeat on market conditions for dynamic random access memory (DRAM) in the second half of this year.
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