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| May 3, 2001 | atimes.com | ||
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China
Disgruntled Taiwanese target foreign workers TAIPEI - As many people celebrated Labor Day by spending time with their families, others took to the streets to demonstrate against the loss of their jobs - positions that people once thought of as "iron rice bowls," or jobs for life. Laborers with low technical backgrounds are not the only ones to feel the chill of a cooling economic environment. Even those who work in the banking sector are finding that no job is completely secure given the possibility of mergers and acquisitions. The protest march, the second of the day, was organized by the Taiwan Confederation of Trade Unions and brought together tens of thousands of workers from around the island. The demonstrators gathered at the Chiang Kai-shek Memorial Hall in the early afternoon to listen to speeches by labor leaders who criticized the government's "faulty labor policy" that they claim has led to the rocketing unemployment before marching to the Executive Yuan. Some labor groups which had taken part in a similar parade called by the Chinese Federation of Labor in the morning also participated in the afternoon march, which was drenched by rain half-way to its destination. The protesters unfolded a handball net in front of the presidential office - en route to the executive yuan - to highlight their demands for a security network to shield workers from the suffering caused by unemployment. In front of the yuan, the demonstrators brandished placards demanding jobs, a security network and control of the capital flight from Taiwan. They presented a petition demanding employment security, the halting of mergers of financial institutions and a hold on the privatization of state-run businesses, which they blamed for stoking the spiralling unemployment rate. The demonstrators dispersed without any trouble after an official at the yuan received their petitions and issued a nine-point series of measures to address the unemployment issue, notably the reduction of the number of foreign laborers by 60,000 over the next four years. The Cabinet-level Council of Labor Affairs (CLA) will spare no efforts to reduce the importation of foreign laborers so as to "guarantee" domestic workers' employment opportunities, a CLA official reaffirmed on Tuesday. CLA chairwoman Chen Chu made the remarks during a press conference after the unions launched their street marches. Several labor groups demanded that the foreign laborer quota be cut to one-fifth of the total number of employees, that the ratio of overseas workers to be brought in for major public construction projects be lowered to 25 percent and that only domestic laborers be employed for the recently unveiled NT$810-billion (US$24.8 billion) government project aimed at expanding domestic demand. In response, Chen said that in an attempt to protect job opportunities for locals, the CLA had begun to cut down the number of overseas laborers recruited by various business sectors from last August 31, thus curbing the annual growth of foreign workers by 30,000 persons. The CLA will stand firm on its policy of gradually reducing the number of overseas laborers to be introduced by various business sectors, Chen stressed. As for the NT$810-billion project aimed at expanding public construction investment, Chen noted that the ambitious project is expected to create 54,000 jobs for local workers hard-hit by the slumping economy. The yuan has decided that only domestic laborers will be hired to work on new public projects, she added. With respect to the demand that the introduction of foreign workers be subject to labor union approval, the CLA head pointed out that according to the Employment Service Act, employers should already notify labor unions before recruiting foreign manpower. Chen added that any company found to be seriously hurting worker's rights and interests will have its foreign laborer quota frozen immediately. Although Taiwan's nearly 4 percent unemployment rate is still lower than that of industrialized nations, Taiwan's job market is witnessing some of the symptoms of developed countries, such as long-term unemployment and mass layoffs. While Taiwan's industrial structure is advancing from labor-intensive to high-tech oriented, traditional manufacturing sectors, such as plastic goods processing and sporting goods assembly are moving out of Taiwan to places where production costs are lower and market access is easier. Hit by the first wave of layoffs were laborers with lower technical backgrounds. In southern Taiwan, where the situation has been especially long and painful, the jobless rate at the end of March already surpassed 4 percent. Taiwan's aspiration to be a member in the World Trade Organization has also had an impact on the island's state enterprises and the service sector. As Taiwan's market will soon be opened to foreign competition, state enterprises must manage to run more economically while the mushrooming banking sector must find ways to face fiercer international competition. The Commission of National Corporations (CNC) under the Ministry of Economic Affairs has mapped out a plan to cut the numbers of people on payrolls to reduce the operational costs at several state enterprises. Under this slimming plan, between 8,000 and 10,000 employees of China Shipbuilding Corp, Taiwan Sugar Corp (Taisugar) and Chinese Petroleum Corp will be laid off. Vice Premier Lai In-jaw said recently that it would be almost impossible to keep the unemployment rate under 4 percent. Many economists agreed with him, pointing out that Taiwan is bound to join the club of nations with high unemployment judging from internal as well as external factors. The Kaohsiung-based China Shipbuilding Corp, which posted a loss of NT$6 billion last fiscal year, is planning to cut the number of its workforce from the current 5,188 to 2,753 - a reduction of 2,435. The Taiwan Machinery Manufacturing Corp., also located in Kaohsiung, is slated to eliminate 340 jobs, despite the fact that China Steel Corp may take over the remaining 170 workers. As for the debt-ridden Taiwan Bus Transportation Corp, an additional 1,200 of its current 3,000-odd employees may be let go, although some of its workforce has already left the state-run company to form a new bus company on their own. At the same time, Tang Eng Iron Workers Co, Ltd, headquartered in Hsinchu County, is mulling a layoff of 500 workers prior to its scheduled privatization plan. On the other hand, Chinese Petroleum Corp (CPC) and Taisugar, both based in Taipei, are planning to streamline by offering nearly 5,000 workers incentives to those willing to retire earlier than at age 65. Taisugar, which currently employs some 7,300 workers, plans to discharge 400 workers at the request of the CNC in a bid to lower its production costs. But the company itself is considering releasing an additional 2,000 employees within two or three years to maintain its manpower at a level of about 5,000. Under a "fat-cutting" program, the CPC has set a goal of reducing its manpower from the present level of 17,000 workers to around 14,000 prior to its privatization slated for 2003. The CPC will try to reach the 3,000 reduction target by offering a better retirement package or shift some of its workers to its subsidiary businesses. Meanwhile, Minister of Economic Affairs Lin Hsin-yi said on Monday he has no ready answer for the problems facing the island's economy. Lin made the comment after being bombarded with questions from lawmakers at the Legislative Yuan about the surging unemployment. He said the measures taken by his ministry to boost the faltering economy will take "a couple of years" to take effect amid the worldwide economic depression. Lin, who warned his fellow countrymen earlier this year to brace for coming hardships, came under fire after ruling Democratic Progressive Party Chairman Frank Hsieh blamed the Ministry of Economic Affairs on Sunday for "reconstructing state-run enterprises" through massive layoffs. Hsieh is also mayor of Kaohsiung City, the location of the state-run China Shipbuilding Corp and Taiwan Machinery Manufacturing Corp, among others, and bears the brunt of the government's efforts to slim down state-run businesses. Lin said he respected Hsieh's opinion, but noted that it will take time for an economic turnaround. The programs implemented by his ministry to upgrade conventional industries, which are being edged out of market because of rising labor costs, will not become effective for another couple of years, said Lin. As well, Taiwan Premier Chang Chun-hsiung said on Monday that the government will take effective steps to increase local work opportunities. Chang attributed the recent sharp rise in Taiwan's jobless rate to economic stagnation, the shortening of the work-week, the exodus of manufacturing firms and a decline in production. To counter the situation, the premier said, the government is considering five "effective measures" to improve the employment situation: Chang noted that more focus will be placed on the development of the industries which can help improve the quality of life of local people and on the training of workers to meet the demand of the labor market. (Asia Times Online/Asia Pulse) ((c)2001 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.) |
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