a. Freedom of Association and the Right to Collective Bargaining
The law provides for the right of workers to form and join independent unions, conduct strikes, and bargain collectively. The law allows foreign workers to form and join unions and to serve as union officers. The law establishes three types of unions: enterprise unions, industrial unions, and professional unions. Enterprise unions are responsible for negotiating the immediate labor rights and entitlements of enterprise-level “collective agreements.” A minimum of 30 members is required to form an enterprise union; there may only be one union per enterprise. Employees in companies with fewer than 30 workers may only join a professional union or an industrial union to exercise their rights. This applied to approximately 78 percent of employees of small and medium sized enterprises. Industrial unions help to link workers in the same industry. Professional unions are geographically constrained within municipal boundaries.
The law prohibits discrimination, dismissal, or other unfair treatment of workers for union-related activities and requires reinstatement of workers fired for trade union activity. Employees hired through dispatching agencies (i.e., temporary workers) do not have the right to organize and bargain collectively in the enterprises where they work. In May the Labor Standards Act was modified to provide job security measures to, and identify the liability of enterprises and dispatching agencies for, temporary workers, particularly the responsibility for occupational injury and the presumption of indefinite and nontransferrable contract.
The right to strike remained highly regulated. Teachers, civil servants, and defense industry employees do not have the right to strike. Workers in industries such as utilities, hospital services, and telecommunication service providers are allowed to strike only if they maintain basic services during the strike. Authorities may prohibit, limit, or break up a strike during a disaster. For all workers, the law divides labor disputes into “rights disputes” and “adjustment disputes.” Workers are allowed to strike only in adjustment disputes, which include issues such as compensation and working schedules. The law forbids strikes in rights disputes related to violations of collective agreements and employment contracts.
The law requires mediation of labor disputes when authorities deem them sufficiently serious or involving unfair practices. Most labor disputes involved wage and severance issues. Local labor authorities were the usual venue to settle disputes by either mediation or arbitration, which is referred to as the alternative dispute resolution. Mediation, which accounted for 95 percent of all cases in 2018, provided a civil resolution and cost-effective way to reach a settlement, usually within 20 days. Arbitration, with legally binding obligations, generally took between 45 and 79 working days to finalize, which was often too lengthy for cases requiring urgent remedies. The law prohibits labor and management from conducting strikes or other acts of protest during conciliation or arbitration proceedings. Labor organizations said this prohibition impeded workers’ ability to exercise their right to strike.
The Ministry of Labor oversees implementation and enforcement of labor laws, in coordination with local labor affairs bureaus. Authorities effectively enforced laws providing for the freedom of association and collective bargaining. A labor ministry arbitration committee reviewed cases of enterprises using discriminatory or improper action to repress union leaders and their activities, and authorities subjected violators to fines or restoration of employee’s duties. Such fines, however, generally were not sufficient to deter violations, especially for financial sectors. Among 12 arbitrated cases with China Airlines as of October, six were appealed by the enterprise; two of them, with a restoration order, have yet to be complied with.
Large enterprises frequently made it more difficult for employees to organize an enterprise union by using such methods as blacklisting the union organizers from promotion or relocating them into other work divisions. These methods were particularly common in the technology sector. For example, there was only one enterprise union in the entire Hsinchu Science Park. With the exception of the banking industry, industrial unions were also underdeveloped.
Authorities encouraged collective bargaining agreements to provide better terms and conditions than the law stipulates. For example, the High-Speed Rail Trade Union successfully won back overtime payments through collective bargaining. The implementation of collective bargaining is still inconsistent. For example, after inspections, the Financial Supervisory Commission removed the chairpersons of certain financial holdings companies from their firms’ independent salary review committees.
Professional unions have grown more influential in collective bargaining. For example, the Taoyuan pilots’ professional union began a strike in February to win better safety provisions for pilots on “red-eye” routes. In August the Taoyuan flight attendants’ professional union went on strike on behalf of EVA Air flight attendants, which became Taiwan’s longest strike on record, lasting 17 days before reaching an agreement.