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CLA mulls subsidy to prop up salaries

“Staff at several high-tech companies complained to the CLA a... that their companies had been asking them to work overtime in violation of the law.” — CLA official

Council of Labor Affairs Minister Jennifer Wang (王如玄) said yesterday that the council was mulling plans to provide subsidies to businesses that are unable to pay the minimum monthly wage for workers forced to take unpaid leave.

During the council’s annual year-end examination of workplace safety, Wang addressed the problem of the growing number of employees currently on unpaid leave, an increasingly popular measure taken by businesses to cut costs during the economic downturn.

The council had come under fire by legislators and labor associations since its announcement that a company forcing full-time workers to take unpaid leave could cut a worker’s pay in proportion to the number of hours cut, even if the monthly salary dips below the minimum of NT$17,280.

The council reversed its decision on Tuesday, saying that businesses would not be allowed to pay full-time workers below the minimum wage. However, Wang said this could cause some businesses to resort to layoffs because they could no longer afford to pay their employees.

The council said that after a meeting with union representatives next Monday, it would unveil the details of its plan on providing subsidies to companies — or directly to workers — to protect jobs without compromising monthly salaries.

Wang declined to provide further details, including how the council would fund the program.

The council said on Thursday it had seen a sharp increase in the number of complaints about unpaid leave in recent months.

It said that while it used to receive about 10 complaints a day, the number had risen to between 40 and 50 per day over the past month, with most complaints involving unpaid leave.

The main complaint was that unpaid leave is tantamount to a wage cut, leaving workers worried that the next step could be a layoff.

One complaint stood out from the deluge of complaints, council officials said, from workers at a solar battery manufacturer who complained that the company had frequently asked them to work overtime and for long hours. Although the employer paid them overtime, the workers said the additional workload was too tiring and asked the council to visit the company for an inspection.

“Staff at several high-tech companies complained to the CLA a few months ago that their companies had been asking them to work overtime in violation of the law,” a labor official said.

However, the rapid change in the economic situation has seen the situation “turn in the opposite direction,” he said.

With orders dropping sharply, there is no overtime and working hours have been greatly reduced.

More than 20 high-tech companies have used unpaid leave and have urged the council to look into the matter, labor groups said.
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