A strike yesterday by hundreds of Vietnamese migrant workers angered by what they said was an illegal pay cut at Compal Electronics Inc’s (仁寶) plant in Taoyuan’s Pingzhen District (平鎮) was resolved with the help of the Taoyuan Department of Labor.
The dispute between the world’s leading contract notebook computer manufacturer and workers at its Pingzhen plant led workers to rally outside the plant.
Father Peter Van Hung Nguyen, founder of the Vietnamese Migrant Workers and Brides Office, said the workers claimed Compal had unjustly increased its deductions for food and lodging from NT$2,500 (US$86.54) per month to NT$4,000.
Photo courtesy of Taoyuan Department of Labor
Workers were also unhappy by what they said was an unexplained NT$6,000 deduction in their pay for this month, Nguyen said.
Compal denied making illegal wage cuts, saying that the deductions, which include income tax, insurance premiums and food and accommodation expenses, were carried out according to the law and related regulations.
The labor department backed the company, saying the increase in food and lodging expenses had been outlined in the contracts the workers signed with the firm.
The dispute over the NT$6,000-plus deduction was due to poor communications, the department said in a statement.
That deduction was to cover their income tax for the first half of the year, which the company collects and pays to the central government.
To clarify and simplify matters, Compal would revise its income tax collection policy, and take monthly deductions to cover taxes instead of once every six months, the department said.
The workers also complained about their dormitory accommodations and facilities.
Compal said it had complied with laws and regulations on accommodations, but it promised to improve the working and living conditions for its migrant work staff.
It also promised to do its best when negotiating and communicating with the migrant workers.
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