Following mounting criticism over a legislative decision about bonuses for workers at state-owned firms based on company performance, the People First Party (PFP) has sought a reversal of the policy before the legislative session ends on Tuesday.
On Monday last week, lawmakers decided that only profit-making state-owned firms could distribute such bonuses, with the amount capped at an amount equivalent to less than 1.2 months’ salary. The decision, which caucus whips of all parties agreed to at a cross-party negotiation meeting, raised ire from trade unions in state-owned enterprises.
Some government officials, including Premier Sean Chen (陳冲) and Central Bank Governor Perng Fai-nan (彭淮南), have expressed concern that the policy would serve as a disincentive for people to work in state-owned enterprises, as well as for employees to remain at state-owned companies.
PFP caucus whip Thomas Lee (李桐豪) said yesterday that his caucus would seek to revise the policy, after the legislature on Friday adopted a resolution demanding that the Executive Yuan put forward new standards for allocating bonuses within three months.
The resolution was sponsored by the PFP and was adopted by the legislature without objection.
A new proposal for the allocation of bonuses, if adopted by the legislature, could replace the decision made on Monday last week, Lee said.
Lee said that lawmakers were “not meticulous enough” in setting the standards for allocating bonuses, because the “one-size-fits-all” principle failed to take into account the individual characteristics of state-owned enterprises.
“They face different market conditions and the responsibility borne by each enterprise is different,” he said.
Taiwan Solidarity Union (TSU) caucus whip Hsu Chung-hsin (許忠信) disagreed with Lee.
Because the TSU supported the PFP-initiated resolution did not mean that the legislative decision made on Monday last week can be overruled, he said.
Hsu added that the legislative decision was a principle that has to be abided by when the Executive Yuan draws up new standards for the allocation of bonuses, because “any conclusion reached at cross-party negotiation meetings has binding force.”
The argument that the “one-size-fits-all” principle did not work for all state-owned firms was “indefensible,” Hsu said.
“The size of the bonus was capped at an amount equivalent to under 2.6 months’ salary. Why didn’t they question the principle when the bonus ceiling was higher?” he said.
Democratic Progressive Party caucus whip Tsai Chi-chang (蔡其昌) said he would like to reconsider the legislative decision to apply different standards when deciding the allocation of bonuses to different state-owned firms, if the standards are “reasonable.”
“For example, considering the competition in the banking industry, workers at state-owned banks should receive higher bonuses if the banks make profits,” he said.
Chinese Nationalist Party (KMT) caucus whip Wu Yu-sheng (吳育昇) said that the legislative decision made at the cross-party negotiation meeting was valid only for bonuses linked to company performances last year.
Under the current system, employees at state-owned enterprises can receive a bonus equivalent to a maximum of 4.6 months’ salary at year-end, composed of two elements — an amount equivalent to 2.6 months’ salary, based on the company’s performance, and an amount equivalent to maximum two months’ salary based on employees’ individual job performance.
Meanwhile, trade unions at state-owned enterprises have scheduled a protest outside the Executive Yuan tomorrow and a large-scale rally on Jan. 30.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft