Following recently announced increases in health and labor insurance costs, labor groups yesterday expressed concern that the rights and benefits of workers would be sacrificed as businesses try to offset the additional costs by minimizing salary increases.
The adjustments to national health insurance premiums are due to take effect on April 1, when the premium rate for universal coverage will increase from the current 4.55 percent to 5.17 percent. Labor insurance rates are also set to rise 0.5 percent on Jan. 1 next year.
Business groups estimate that the increase in health insurance premiums means that companies will incur NT$23 billion (US$700 million) in additional expenses each year on employee salaries and benefits.
CONCERN
Some labor groups worry that rather than absorbing the extra costs through reduced profits, employers would instead try to offset them by delaying pay rises, while business groups continue to lobby for the minimum wage to be frozen at their annual meeting scheduled for July.
“In the foreseeable future, disadvantaged or vulnerable workers, such as the middle-aged and elderly, will be the first to get the axe as businesses seek to minimize the effects of the increased costs,” said Hsiao Chung-han (蕭忠漢), president of the Senior Employment Alliance.
He said employers were likely to use the increases as an excuse to hold the minimum monthly wage at NT$17,280, resulting in a fall in real average income that would hold back economic growth.
“At times like this, government agencies should be trying to minimize negative impacts on businesses, rather than implementing policies that only worsen the unemployment problem,” Hsaio said, referring to plans, such as extended maternity leave, that firms are also worried about.
PROTECTING RIGHTS
Taiwan Labour Front secretary-general Son Yu-lian (孫友聯), however, said measures such as raising the minimum wage were necessary to protect laborers’ rights and that they should not be sacrificed the moment businesses “whine” about premium rate increases.
Son said government agencies should monitor businesses to ensure they do not indirectly transfer the extra costs onto employees.
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