Along with the transformation of the structure of industry in the past few years, traditional, labor-intensive industries have, one after another, left Taiwan for Southeast Asia and China. Moving offshore has recently become a trend among the high-tech information sector as well. As a result, the problem of unemployment among low-skilled and unskilled laborers is becoming increasingly serious.
The Council of Labor Affairs (CLA) has put forward a proposal to reduce working hours and lower the percentage of foreign labor employed in Taiwan. This, plus measures to reduce energy and water supplies, has effectively kicked industry where it hurts. Several large enterprises -- both TAIEX and TAISDAQ companies -- have considered leaving. In addition, the domestic effects of a sluggish economy and lackluster stock market have caused a local unemployment problem to surface.
The CLA and labor representatives have long believed that foreign labor competes for local labor's rice bowl and that reducing the number of foreign laborers will improve the unemployment situation.
They're not aware, however, of another phenomenon -- one in which foreign labor guarantees job opportunities for local labor. This is because, as a society develops, local labor is ever more eager to avoid many types of jobs that involve heavy, dirty or highly polluting work. It is only the willingness of foreign workers to work hard for little pay, that allows traditional, labor-intensive industries to survive. In fact, if foreign labor numbers were reduced, factories would be unable to operate efficiently -- and local workers would lose jobs.
Another consideration is that weekly working hours have been reduced from 44 to 42 hours. In effect this gives laborers only a 5 percent increase in salary and benefits, but companies must pay additional over-time to workers opting to work over 42 hours a week to maintain productivity at established levels. Companies also incur costs in the co-ordination and transfer of staff for overtime work. Corporate expenditure has therefore increased by 15 to18 percent, eliminating companies profit margins, or even forcing them to operate at a loss. Naturally, labor-intensive industries who have been clinging to their Taiwan roots are unable and unwilling to force themselves to do so any longer. Southeast Asia and China are extending large welcome mats, offering labor conditions that are far better than those that prevail here.
Environmental protection departments have also given industry a lot of pressure. If domestic labor and capital interests cannot arrive at a consensus, businesses will inevitably choose to move out. If moving out creates the hope of getting a second breath and, moreover, if workers receive better treatment on foreign soil, who will want to stick around here, only to get bullied and yelled at? Actually, the true test will come after both Taiwan and China join the WTO next year. When that time comes and Taiwanese products made in China start flowing back into Taiwan, local industries will be completely unable to stem the low-capital, competitive advantages enjoyed by those that have moved off-shore. Be they agricultural products or general consumer goods, cheap Chinese-produced goods will take advantage of our low customs tariffs and come a-knocking.
When considering their future, how can those industries remaining in Taiwan -- for their own survival's sake -- not move ahead with plan to leave soon?
Talk of the future "big three links"
In sum, as no current development or trend is beneficial to labor, I would propose the following countermeasures:
First, the government needs to engage in more meticulous planning and discussion regarding foreign labor and related measures. Care must be taken so that the big isn't sacrificed for the sake of the small, leaving workers worse off. The government should also discuss in greater depth how it will achieve its policy objectives.
Second, the Ministry of Economic Affairs and the CLA should cooperate on industrial policy adjustments. Only concerted action will ensure the survival and shared prosperity of both labor and employers.
Third, the CLA 's Employment and Vocational Training Administration should increase promotion of job-transferral and multi-skill training programs for workers in industries that have moved off-shore. Any Taiwanese companies operating off-shore should have package measures and planning in place regarding compensation, as well as re-training for discharged workers, no matter what the industry.
Fourth, government departments need to listen more carefully and respectfully to the voice of business. There also have to be clear-cut measures that encourage businesses to foster a sense of social duty towards safeguarding the rights and interests of labor.
Fifth, the government should plan for the knowledge economy and financial measures appropriate to it, paying more attention to bringing in new jobs and new types of services. Measures for education and training need to be passed, to give workers the abilities and skills necessary to adjust to the age of the knowledge-based economy. Finally, it is to be hoped that when making China policy, officials will take into account the protection and advancement of job opportunities for domestic labor.
Chen Ming-chang is a professor in the department of business administration at National Taipei University.
Translated by Scudder Smith
There are moments in history when America has turned its back on its principles and withdrawn from past commitments in service of higher goals. For example, US-Soviet Cold War competition compelled America to make a range of deals with unsavory and undemocratic figures across Latin America and Africa in service of geostrategic aims. The United States overlooked mass atrocities against the Bengali population in modern-day Bangladesh in the early 1970s in service of its tilt toward Pakistan, a relationship the Nixon administration deemed critical to its larger aims in developing relations with China. Then, of course, America switched diplomatic recognition
The international women’s soccer match between Taiwan and New Zealand at the Kaohsiung Nanzih Football Stadium, scheduled for Tuesday last week, was canceled at the last minute amid safety concerns over poor field conditions raised by the visiting team. The Football Ferns, as New Zealand’s women’s soccer team are known, had arrived in Taiwan one week earlier to prepare and soon raised their concerns. Efforts were made to improve the field, but the replacement patches of grass could not grow fast enough. The Football Ferns canceled the closed-door training match and then days later, the main event against Team Taiwan. The safety
The National Immigration Agency on Tuesday said it had notified some naturalized citizens from China that they still had to renounce their People’s Republic of China (PRC) citizenship. They must provide proof that they have canceled their household registration in China within three months of the receipt of the notice. If they do not, the agency said it would cancel their household registration in Taiwan. Chinese are required to give up their PRC citizenship and household registration to become Republic of China (ROC) nationals, Mainland Affairs Council Minister Chiu Chui-cheng (邱垂正) said. He was referring to Article 9-1 of the Act
The Chinese government on March 29 sent shock waves through the Tibetan Buddhist community by announcing the untimely death of one of its most revered spiritual figures, Hungkar Dorje Rinpoche. His sudden passing in Vietnam raised widespread suspicion and concern among his followers, who demanded an investigation. International human rights organization Human Rights Watch joined their call and urged a thorough investigation into his death, highlighting the potential involvement of the Chinese government. At just 56 years old, Rinpoche was influential not only as a spiritual leader, but also for his steadfast efforts to preserve and promote Tibetan identity and cultural
RSS