Reduction in workweek prompts rethink on labor

The cut in the workweek that was passed last week has prompted cries of protest from industry, and will possibly prompt the government to call a halt to its policy of reducing the number of foreign laborers, originally scheduled to begin on July 1.

The legislature voted over-whelmingly last Friday to amend the existing limit on maximum working hours from 48 hours a week to 84 hours every fortnight, ignoring the Cabinet's original proposal of 44 hours a week.

While the amendment was welcomed by labor groups, it caused uproar from employers, who argue they will be burdened with considerably higher labor costs -- estimated at NT$177.6 billion a year -- once the new policy comes into force at the beginning of 2001.

In view of the employers' protest, Premier Tang Fei (唐飛) has ordered ministries to review the impact of the amendment and requested that the Council of Labor Affairs (CLA) reassess the policy of reducing the number of foreign workers imported and halt it if necessary.

Chung Chin (鐘琴), the government's spokesperson, yesterday confirmed that the premier has ordered a review on the reduction of foreign workers for fear the policy will only add to employers' problems, especially in the manufacturing sector, which is expected to suffer considerable losses from the reduction of the workweek.

"It's true the Cabinet is now considering whether to halt the reduction of foreign workers, as the amendment the legislature passed last week is not what the Cabinet had expected." Chung said.

"We are assessing lots of possible measures. The government has felt the reduction of foreign workers, if carried out as planned, will have too serious an impact on industry," she said.

Reduction of foreign workers is one of President Chen Shui-bian's (陳水扁) electoral pledges, which aims to tackle the nation's high unemployment rate, especially among Aborigines. The new government had planned to reduce by 15,000 the number of foreign workers between July 2000 and June 2001 -- 5 percent of the 300,000 foreign workers in Taiwan -- and to assess the effects of the policy annually.

To achieve this target, the government announced earlier this month that it would gradually restrict the import of foreign workers employed in manufacturing and those employed as care-givers.

However, Chung said the government is thinking of temporarily halting the part of the policy concerning manufacturing to allow the industry to import foreign workers at the same level as they do currently.

CLA Chairperson Chen Chu (陳菊) also confirmed yesterday that the premier has told her to reassess the policy of reducing the number of foreign workers. Nevertheless, she stressed that in the long term, this plan will definitely be carried out, even though there might be adjustments to it in the short term.

Chen said the issue of foreign workers will be discussed at the Cabinet meeting scheduled for tomorrow. According to studies conducted by the CLA, foreign workers have been a major contributor to the nation's rising unemployment in recent years, particularly in labor-intensive industries.

Lin Hui-kuan (林惠官), president of the Chinese Federation of Labor (中華民國全國總工會), warned the government yesterday not to make any hasty decisions to appease industry, noting that the reduction of the workweek and a reduction in the number of foreign workers are two separate issues and should not be linked.