Newspaper article China Post

Industry, Unions Downbeat on Labor Law

Newspaper article China Post

Industry, Unions Downbeat on Labor Law

Article excerpt

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Business leaders and labor unions expressed dissatisfaction Wednesday with the passage of a bill that eliminates seven statutory holidays and increases annual paid leave and overtime pay.

Lin Por-fong ([...]), chairman of the Chinese National Association of Industry and Commerce ([...]) on Wednesday thanked President Tsai Ing-wen, the Cabinet and the Legislature for their efforts in bringing an end to months of disputes over the bill.

However, he said that the industry "has a lot to say" about some of the policies, which include additional annual paid leave for junior employees and increased overtime pay.

"It's not likely the industry will stage a walkout, but I'm afraid (the policies) are going to have a negative impact on the country's efforts to create an investment-friendly environment," he said.

The new amendment calculates pay for overtime work completed on rest days by four-hour increments. Every one to four hours of overtime that an employee works on a designated day off count as four hours; every five to eight hours count as eight hours [...] etc.

"Employees may intentionally work nine hours to earn 12 hours pay, when in fact the work could be finished in eight hours," Lin said on Wednesday.

"Enterprises should respond to the new amendment by dismissing inefficient employees," he said.

The amendment stipulated that every employee who passes their sixth month at the same company must receive three days of paid leave.

Lin warned that this policy is going to cost the country an additional NT$9 billion every day. …

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