On Dec. 21, Taiwan Semiconductor Manufacturing Co (TSMC) chairman Morris Chang (張忠謀) announced a new compensation system for the chipmaker’s employees next year, including a 15 percent increase in base salaries beginning on Jan. 1.
In a video message, Chang told employees that the hike in base salaries was part of structural changes to the company’s compensation system. But the move also showed that TSMC is working to attract and retain employees amid intensifying competition.
Following a series of actions to cut or freeze salaries beginning late last year to cope with the global financial crisis, several Taiwanese technology companies have now announced — or are considering — upward adjustments in employee paychecks.
According to various reports, Acer Inc, Compal Electronics Inc, AU Optronics Corp and MediaTek Inc are among the iconic tech firms likely to raise employee salaries next year. Companies in the real estate sector such as Sinyi Realty Co, Farglory Land Development Co and Chong Hong Construction Co are also reportedly planning salary hikes.
Even so, it is too early to say the economy is on a firm footing and growing across the board. Last week, a local job bank’s poll showed that 37 percent of local firms have considered raising employee salaries next year, while 58 percent had not.
The truth is that many Taiwanese companies are still fighting to stay in business and are hesitant to hire for want of solid signs of recovery. That’s why the nation’s unemployment rate fell only to 5.86 percent last month from 5.96 percent the previous month — meaning there are still 645,000 people out of work.
The national statistics bureau said 150,000 jobs would need to be added to the market before the headline jobless rate can fall below 5 percent. That is a very challenging goal, though it should be noted that the Council for Economic Planning and Development last week unveiled targets for next year that include an unemployment rate of 4.9 percent.
But a serious problem remains: The number of people who have been unemployed for more than one year — whom statistics officials refer to as “long-term unemployed” in their surveys — totaled 112,000 last month, up 4,000 from the previous month and marking the highest monthly level since January 2004.
In addition, the number of unemployed middle-aged and elderly people reached 141,000 last month, up 3,000 from the previous month and the highest in three months.
The problem facing people in these categories is that they face more obstacles in getting back into the workforce than any other category of jobseeker. This predicament poses a potential threat to the finances and stability of a large number of families in the long term.
Another concern relating to the strength of economic recovery is the continuing decline in wages in the industrial and services sectors, which in turn hurts companies and discourages consumer spending.
The decision by some companies to raise employee salaries next year is welcome news as it points to recovery in their sectors.
However, even though economic growth is likely to be registered next year, uncertainties remain in the labor market and a noticeable increase in household income is not likely to emerge anytime soon.
When former president Tsai Ing-wen (蔡英文) first took office in 2016, she set ambitious goals for remaking the energy mix in Taiwan. At the core of this effort was a significant expansion of the percentage of renewable energy generated to keep pace with growing domestic and global demands to reduce emissions. This effort met with broad bipartisan support as all three major parties placed expanding renewable energy at the center of their energy platforms. However, over the past several years partisanship has become a major headwind in realizing a set of energy goals that all three parties profess to want. Tsai
An elderly mother and her daughter were found dead in Kaohsiung after having not been seen for several days, discovered only when a foul odor began to spread and drew neighbors’ attention. There have been many similar cases, but it is particularly troubling that some of the victims were excluded from the social welfare safety net because they did not meet eligibility criteria. According to media reports, the middle-aged daughter had sought help from the local borough warden. Although the warden did step in, many services were unavailable without out-of-pocket payments due to issues with eligibility, leaving the warden’s hands
There is a modern roadway stretching from central Hargeisa, the capital of Somaliland in the Horn of Africa, to the partially recognized state’s Egal International Airport. Emblazoned on a gold plaque marking the road’s inauguration in July last year, just below the flags of Somaliland and the Republic of China (ROC), is the road’s official name: “Taiwan Avenue.” The first phase of construction of the upgraded road, with new sidewalks and a modern drainage system to reduce flooding, was 70 percent funded by Taipei, which contributed US$1.85 million. That is a relatively modest sum for the effect on international perception, and
At the end of last year, a diplomatic development with consequences reaching well beyond the regional level emerged. Israeli Prime Minister Benjamin Netanyahu declared Israel’s recognition of Somaliland as a sovereign state, paving the way for political, economic and strategic cooperation with the African nation. The diplomatic breakthrough yields, above all, substantial and tangible benefits for the two countries, enhancing Somaliland’s international posture, with a state prepared to champion its bid for broader legitimacy. With Israel’s support, Somaliland might also benefit from the expertise of Israeli companies in fields such as mineral exploration and water management, as underscored by Israeli Minister of
RSS