Massive layoffs made by enterprises in Taiwan surpassed 1,500 in September at a time of slow economic growth and weakening global demand caused by trade disputes between the US and China, according to the Ministry of Labor.
In the first nine months of this year, the number of massive layoffs reached 11,477, up 19.7 percent from the same period last year, data compiled by the ministry showed.
In September, the number of laid-off workers reported by companies hit 1,528, up from 973 in August. The September figure was the third-highest this year after May’s 2,884 and January’s 1,630, the data showed.
In May, financially troubled flat- panel maker Chunghwa Picture Tubes laid off 2,884 workers due to business closures. In January, solar cell maker Motech Industries Inc, which suffered a global supply glut, also announced a mass redundancy.
Under the Act for Worker Protection of Mass Redundancy (大量解僱勞工保護法), the definition of what constitutes a massive layoff varies based on the size of a company’s workforce.
For example, a company with a workforce of fewer than 30 employees has to report its layoff plan to labor authorities when it plans to lay off more than 10 workers in 60 days, while a firm with a workforce of more than 500 employees is required to report its layoff plan when it plans to let go one-fifth of its workforce in 60 days, or 80 workers in one day.
In September, 19 massive layoff plans were filed with labor authorities, resulting in the more than 1,500 employees affected, the ministry said.
During that month, the transportation and logistics sector reported the largest number of laid off workers at 915, ahead of the medical care and social services sector with 296 layoffs, it said.
Ministry officials said a cargo transportation company reported that it would terminate employment contracts with more than 900 workers by the end of September.
In addition, a hospital decided to shut down, leading to 272 layoffs in September, the ministry said.
It added that the massive layoffs in September were concentrated most in these two companies, indicating that the two were isolated cases and no impact was felt by the overall economy.
However, the ministry also said it would pay close attention to the local job market to see whether layoffs are increasing.
Meanwhile, the number of workers on unpaid leave in Taiwan at the end of October was 2,040, an increase of 44 workers since Oct. 15, the ministry said.
A total of 47 employers nationwide had placed their employees in unpaid leave programs at the end of October, up by eight from Oct. 15, according to ministry data.
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