A dedicated channel would be established to assist more than 200 workers at a tire manufacturing company who are expected to be laid off this year, the Taoyuan Department of Labor said yesterday.
Federal Corp earlier this month said that it was planning to suspend production at its plant in Taoyuan’s Guanyin District (觀音), and would lay off 214 workers in batches before the end of June.
Federal is engaged in negotiations with its workers’ union, the Department of Labor said.
The department would assist in the negotiations and would set up a dedicated window to help safeguard the rights and interests of the employees, it said.
Federal’s Guanyin plant employs 435 people — 310 Taiwanese and 125 migrant workers, the department said.
The migrant workers whose contracts would expire would return home, while Taiwanese would be allowed to transfer to other employers, the labor department said, citing Federal’s human resources department.
The labor department said it had reminded Federal that it must abide by laws and regulations, including the Act for Worker Protection of Mass Redundancy (大量解僱勞工保護法).
The company is required to offer severance pay and provide involuntary resignation certificates, the labor department said.
Federal said it would suspend production at the Guanyin plant due to anti-dumping tariffs imposed by the US, a spike in raw material prices and unstable demand during the COVID-19 pandemic.
The tire maker, established in 1954, saw a 72 percent drop in sales in 2021, after the US import duties were imposed, Tire Business reported.
Flagging business also led to the closure of Federal’s flagship tire plant in Taoyuan’s Zhongli District (中壢) in 2021, it said.
Federal allocated US$13 million for earnings impairment associated with the factory’s closure, and earmarked US$7.5 million to cover severance pay for displaced workers, Tire Business reported.
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