To ease its massive financial burden, the KMT has worked out downsizing plan that would involve cutting the pay of its staff by 10 to 20 percent starting next month and laying off 1,000 employees in two years.
KMT officials estimate that the pay-cut plan would help save up to NT$260 million annually. The party currently spends around NT$400 million per month on personnel expenses.
Chang Che-shen (張哲琛), director-general of the KMT's Administration and Management Committee, said the party would seek the approval of its workers' union for the plan before submitting them to the Central Standing Committee for finalization.
The KMT workers' union is set to meet on June 28 to discuss the plans.
The KMT has been described as the world's richest political party because of its extensive assets and the large number of businesses it runs.
The party, however, has experienced financial problems over the past two years after its 50 years of control of executive power came to an end.
KMT Lien Chan (連戰) has recently confessed that there is a wide gap between reality and public perceptions about the party, saying that KMT-run businesses have suffered more than NT$34 billion in losses over the past eight years.
According to statistics provided by the KMT, the party has 2,100 full-time workers who are directly responsible for the party's operation. Another 700 hold miscellaneous posts, such as cleaners and drivers.
There are also roughly 1,100 retired employees who receive a monthly retirement pension from the party.
Under the downsizing plan, directors-general of each committee and those holding a higher position would take a 20-percent pay cut, while deputy directors-general would have their pay decreased by 18 percent.
The directors-general are currently paid between NT$160,000 and NT$170,000 per month, a rate equivalent to that of a ministerial-level government official.
Employees holding grade-A, grade-B and grade-C positions would have their pay cut by 14.9 percent, 11 percent and 10 percent, respectively. Employees at the grade-A level are currently paid approximately NT$100,000 per month, grade-B NT$60,000 to NT$70,000, and grade-C NT$30,000 to NT$50,000.
With the lay-off plan, the KMT would dismiss 200 staff now working in its headquarters and another 800 currently working in local branch offices in two years.
In line with this goal, the party would encourage its employees to take early retirement.
The ages for mandatory retirement would be advanced by five years to 60 for grade-A employees, 55 for grade-B employees and 50 for grade-C employees.
To further streamline its organization, the number of departments at KMT headquarters would be cut from 36 to 24, while the number of local branches would be reduced from 378 to 120.
The KMT plans to use the streamlining project to dispose of unused properties by returning them to respective local governments or by donating them to public-interest groups.
Many of the KMT's branch offices were donated by township governments.
The KMT has planned to dispose of many of its "controversial" assets of its own accord. The move is widely seen as a response to the DPP government's possible enacting of a law to investigate the KMT's assets and confiscate those that were unlawfully gained.
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