Tue, Jan 05, 2016 - Page 13 News List

CPT unpaid leave scheme scrapped as costs decline

By Lisa Wang  /  Staff reporter

Local panel maker Chunghwa Picture Tubes Ltd (CPT, 中華映管) yesterday said that it ended an unpaid leave scheme one month earlier than planned because of falling costs and improving factory utilization.

Company president Lin Sheng-chang (林盛昌) said in an internal letter sent to employees that the company decided to scrap the unpaid leave scheme from this month as CPT has reduced costs over the past two months, a public relation’s department official told the Taipei Times.

CPT has seen customers’ orders improve slightly and has formulated new turnaround measures, Lin said in the letter.

About 2,515 employees from CPT are likely to benefit from the cancelation of the unpaid leave program, the latest figures released by the Ministry of Labor showed yesterday.

Originally the unpaid leave scheme was expected to be in place for three months through this month as part of CPT’s measures to cope with sluggish demand for LCD panels.

The company also closed down a 4.5-generation plant in Taoyuan’s Longtan District (龍潭) in November, as smartphone demand tumbled amid a faltering Chinese economy.

CPT has also inked an agreement to sell a fourth-generation plant to its panel-making subsidiary Giantplus Technology Co (凌巨科技) for NT$1.8 billion (US$54.16 million) to improve efficiency and boost competitiveness. CPT holds a 53.67 percent stake in Giantplus.

CPT’s suspension of the unpaid leave program gave a boost to the company’s stock price at the beginning of Taipei trading yesterday. CPT shares ended flat at NT$0.73.

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