Employees of state-run enterprises, including money-losing entities, are to receive the equivalent of up to 2.6 months’ salary as year-end bonuses, the State-owned Enterprise Commission said yesterday, amid widespread controversy.
In February next year, employees of CPC Corp, Taiwan (CPC, 中油) are to receive 2.6 months’ salary as a year-end bonus, followed by Aerospace Industrial Development Corp’s (AIDC, 漢翔航空) 1.88 months’ salary, Taiwan Power Co’s (Taipower, 台電) 1.65 months’ salary, Taiwan Water Corp’s (TWC, 台灣自來水) 1.46 months’ salary and Taiwan Sugar Corp’s (Taisugar, 台糖) 1.31 months’ salary, State-owned Enterprise Commission Executive Director Liu Ming-chung (劉明忠) told a press conference.
“We think these are relatively fair results. We have factored in the impact of some government policies [that have limited the performance of those companies],” Minister of Economic Affairs Shih Yen-shiang (施顏祥) told reporters.
The year-end bonuses do not include extra bonuses based on employees’ job performance as reviewed by the Executive Yuan.
The Cabinet has approved an extra two months’ salary for AIDC employees’ year-end bonuses, bringing their total year-end bonuses to 3.88 months’ salary, according to Liu.
The Executive Yuan is still reviewing four other state-run enterprises’ annual performance, Liu said.
Workers at those four state-owned companies are to receive at most two more months’ salary as year-end bonuses, if their performances are graded as superior.
CPC has accumulated losses of NT$74 billion (US$2.54 billion) as of the end of last year, while Taipower’s losses piled up to NT$117.6 billion during the same period.
Shih blamed the losses primarily on the government’s policies of limiting increases in fuel and electricity prices.
Excluding the policy factor, CPC and Taipower actually were making money, Shih said. He did not disclose how much they earned.
AIDC and Taisugar reported profits of NT$1.1 billion and NT$5.5 billion respectively last year, Liu said.
Though TWC lost NT$367 million last year, it would have made a profit but for the impact of political issues, he said.
Noting that Shih was formerly a CPC chairman and therefore should know about the company’s faults, mismanagement and gross misuse of bonuses, Democratic Progressive Party Caucus Secretary-General Tsai Chi-chang (蔡其昌) lambasted Shih for failing to carry out reforms and instead giving protection to unseemly practices.
Shih should also be aware that the government’s raising of both fuel and electricity prices earlier this year was one of the issues that people complained about most, he said.
“Shih should tender his resignation and apologize for a job badly done,” Tsai added.
Additional reporting by staff writer