Workers on reduced hours in nine industries would be eligible to receive up to NT$12,100 per month under an expanded employment subsidy, the Ministry of Labor announced yesterday.
The policy is to be effective retroactively from Aug. 1.
Changes in the global economy, such as US tariffs and fluctuations in the exchange rate of the New Taiwan dollar, are projected to effect up to 42,000 employees nationwide, the ministry said.
Photo: CNA
It in March launched employment stabilization measures for workers in rubber products, machinery and equipment, and other transportation or parts manufacturing industries, Minister of Labor Hung Sun-han (洪申翰) said.
After a comprehensive assessment — which considered trade unions’ suggestions, the number of reduced work shifts, exchange rates and an evaluation of the new US tariffs’ impact on industries — the ministry expanded the measures to workers in food production, textiles, plastic production, metal manufacturing, electrical equipment manufacturing and auto parts production, Hung said.
The ministry held talks with several major trade unions, which expressed concerns that their workers would be negatively affected by Washington’s 20 percent tariff announced on July 31, he said.
Taiwan’s traditional industries are mainly made up of small or medium-sized enterprises, which might be hit harder than large businesses, he added.
The ministry also raised the subsidy rate for lost wages from 50 to 70 percent at a maximum of NT$12,100 per month, which can be combined with financial support from the ministry’s “Recharge Program for Workers” that provides skills training for employees who are furloughed or whose hours have been reduced, Hung said.
For example, a worker whose hours were cut and whose monthly wage fell from NT$45,800 to the minimum wage of NT$28,590 could avoid losing their total income through a combination of the labor subsidies, the ministry said.
Alongside the possible NT$12,100 from the expanded subsidy, the employee could obtain the remaining NT$5,110 to cover their wage reduction if they participate in the recharge skills training program, it said.
Employment insurance data showed that the nine covered industries have a combined 1.05 million insured workers.
Not every worker would face reduced hours and not all companies export goods to the US, Hung said, adding that only 2,761 workers currently have reduced hours.
To be eligible for the program, employees in the designated industries must have agreed with their employers to reduce working hours for at least 30 days and registered with local labor authorities.
Employees must apply within 90 days of a 30-day period of reduced hours, either online or through a local Workforce Development Agency office.
Accepted applicants can claim subsidies for up to six months.
Additional reporting by Lee Ching-hui
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