Labor groups yesterday called the Economic Development Advisory Conference's approval of a number of new labor policies a step back for the nation's workforce.
"There are but four labor representatives among the conference's 120 advisors. It is impossible for workers to articulate their opinions at the conference," said Chuang Miao-tzu (莊妙慈), secretary general of the Committee of Actions of Labor Legislature. "Workers can only suffer one defeat after another."
Labor groups singled out the conference's proposal regarding the minimum wage.
The conference decided that laborers should be protected by a minimum wage as stipulated by law, but said the law should be adjusted depending on the nation's economic situation.
"The minimum wage is the basic guarantee of livelihood for underprivileged laborers and their families. We cannot accept it being any smaller," said Yang Wei-chung (楊偉中), news editor of Labor Power, a monthly publication defending workers' rights.
Activists said that lowering the minimum wage would also impact on pensions and severance pay.
"The consensus on the minimum wage proposal [is ill-advised] because the standard is to be lowered." said Tang Shu (
They also criticized the proposal to require that foreign workers deduct rent and food allowances from their wages.
The Council of Labor Affairs has also sought ways to reduce the burden on foreign workers who must pay brokerage fees to the firms that found them employment in Taiwan.
Tang explained that much of the money foreign laborers pay to brokers is untraceable, because the fee is a combination of loans, service fees and other necessary expenses foreign laborers are required to pay.
"In addition to brokerage fees, foreign laborers have to pay back loans to brokers which cover travel expenses," Tang said.
Labor activists were also disappointed with the conference's decision to require employers to match only 6 percent of workers' wages toward pension funds. This change is expected to be introduced when a new pension system is established that will allow workers to have an individual retirement account or annuity.
Employers' matching rate is to start at 2 percent and be raised to 6 percent over a three-year period.
Labor representatives said the premium rate is too low to create a pension sufficient to support life after retirement. They insisted employers must deposit over 12 percent.
Officials from the council said 6 percent is the maximum rate that employers are willing to pay or are able to afford.
The council said that the suggested changes to the pension system are a major advancement.
The current pension system stipulates that only workers who have worked for an employer for 25 years -- and employees aged 55 or older who have served in the same company for 15 years -- are eligible for a pension.
The council began designing a new pension system years ago. But how much the employers should deposit into the retirement fund has long been in dispute.
The council called the conference's suggestion regarding pension systems "significant."
In the past, many companies were not open long enough for employees to collect retirement funds based on the current system. Moreover, most businesses failed to deposit the legally required matching funds into employees' accounts.
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