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Care for Employees
  • Salary and Compensation
  • Employee Welfare
  • Preserve Human Rights
  • Occupational Safety and Health Management

FENC established a variable payroll system that rewards individual and team performance. The Articles of Incorporations stipulates that a percentage of the Company's net profit shall be dedicated toward employee compensation. We do not issue stock options, nor do we have company policy for deferred or vested share options. The Company does not offer signing bonus or recruitment incentives for recruiting high-level executives. The same retirement, benefit and severance plans apply universally toward all employees within the same organization in accordance with local regulations.

The payroll is reviewed regularly in order to retain talents. Business sites in Taiwan participate in the salary survey conducted by Towers Watson on a regular basis to stay up to date on the market rate and make proper adjustment. Business sites in China make payroll adjustments based on the salary adjustment and percentage released by local governments. Business sites in Vietnam consider the government issued standards for payroll adjustment while consulting salary survey released by major industrial areas.

Within FENC's industry chain, there is a gender gap. Business sites in Taiwan and China are mostly concentrated on the midstream and upstream with a technical focus on chemistry. As a result, male employees are largely better paid than female employees. In 2018, female and male employees in Taiwan received generally equal pay, which is a reflection of the fairness of internal training and performance review within the Company. In comparison, business sites in Vietnam have a higher concentration on the downstream garment industry, in which female employees tend to excel. Hence, female managers and staff here receive higher salary than their male counterparts. This phenomenon also reflects that when it comes to considerations for promotion and salary adjustment within FENC, gender is not a deciding factor.

►Salary Comparison by Gender

Region Taiwan China Vietnam
Year 2016 2017 2018 2016 2017 2018 2016 2017 2018
Item
Director/Section Chief and Above 89% 90% 90% 95% 96% 94% 150% 127% 172%
Office Clerk 94% 96% 101% 85% 78% 82% 107% 107% 107%
Factory Worker 100% 121% 120% 94% 92% 95% 93% 92% 98%

Note:The percentage is derived by dividing average female salary by average male salary for the same rank of job.

►Salary Comparison to Market Rate

Region Taiwan China Vietnam
Year 2016 2017 2018 2016 2017 2018 2016 2017 2018
Item
Average Annual Regular Earnings Over Market Rate 41% 43% 47% 14% 15% 8% 47% 69% 62%
Entry Level Salary Over Minimum Wage  37% 31% 25% 108% 91% 102% 12% 12% 12%

Note:Market pay rates in Taiwan are based on the average salary in the manufacturing sector and minimum wage released by Directorate-General of Budget, Accounting and Statistics. Market pay rate in China is based on the average salary and minimum wage released by Shanghai and Suzhou Municipal Government. Market pay rate in Vietnam is based on the average salary and minimum wage of District 1 released by the General Statistics Office of Vietnam.

►Ratio of Salary Increase Between the Highest Salary and Median Salary in 2018

Region Taiwan  China  Vietnam 
Item
Ratio Between the Highest Individual Salary
and Median Salary of Other Employees
7.55:1 3.92:1 12.5:1
Ratio of Salary Increase Between the Highest Individual Salary
and Median Salary of Other Employees
1.32:1 1.15:1 8.6:1

Note:

  1. Data released in China is the average from all production sites.
  2. In Vietnam, the ratio of percentage salary increase between the highest individual salary and the median salary of other employees is 8.6:1. The main contributing factors are duty adjustment for the highest paid supervisor and the supervisor's high-achieving performance review.

►Average and Median Annual Salary for Non-managerial Positions

Unit: NT$
Year 2016 2017 2018
Item
Average Annual Salary (A) 799,700 817,063 916,594
(B) 876,479 917,182 1,049,689
Median Annual Salary  (A) 688,994 720,980 803,835
(B) 778,437 811,503 911,907
Number of Employees in
Non-Managerial Positions
(A) 4,919 4,670 4,649
(B) 3,947 3,755 3,678

Note:

  1. Statistics in row "A" exclude senior vice president and positions that are higher; statistics in row "B" excludes senior vice present, positions that are higher, and positions held by foreign employees.
  2. FENC is considered a stand-alone entity for the statistics in the above table.

The Company's Remuneration Committee, chaired by an independent director, examines employees' remuneration system and the remuneration payout methods for the Board members, compares the Board's remuneration and managers' bonuses with their counterparts in other companies, and assesses important issues such as long-term compensation, year-end bonuses, annual salary adjustment and the enforcement rules of performance evaluation.

FENC has an established performance review system, which evaluates employees' individual performance based on their goals and personal performance. The review also serves as the basis for salary adjustment. High achieving employees will receive a special raise and job promotion

Employee Welfare

FENC regards the welfare of its employees worldwide with importance. In Taiwan, the Company established Employee Welfare Committee, which consists of employee members and has autonomy over fund allocation and disbursement method. Contribution and disbursement of funds at all business sites in Taiwan are in accordance with regulatory requirements. The labor union and Employee Welfare Committee have the discretion in fund allocation, which covers regular outings for native and foreign employees, movie screenings, hiking trips, club activities, health checkup, scholarships, various cash subsidies and insurance. We also have employee indemnity measure in place. All native and foreign employees are enrolled in life insurance and disability insurance, which covers levels 2 to 11. The Company also negotiated favorable rates on health and cancer insurance policies, which employees may opt-in.

Welfare fund at production sites in China is disbursed by the labor union and available for all permanent employees. Benefits include cash subsidies (for birthday, wedding, childbirth, hospitalization and funerals), holiday gifts (red envelopes and gift certificates), medical benefits (health checkup, gynecology checkup, and medical service for single child), and discounts on transportation, food, accommodation and travel expenses.

In Vietnam, the labor union, factory office and human resources office co-organize the annual events, including fun games, food festival, and cheerleading competition. Participation is factory wide and the events are quite well received.

Some production sites are located in remote industrial areas and employees work in shifts, meaning that the Company needs to pay particular attention to the wellbeing and daily needs of employees. Each year, FENC works on upgrading both the hardware and software to increase comfort at the work environment and dormitory. The dormitory and employee cafeteria also undergo annual review to assess the needs of employees and for continuous improvements.

FENC recruited 1,143 foreign employees in Taiwan. Their salary is determined in accordance with regulatory requirements. In order to give them a pleasant and comfortable work environment away from home, the Company provides many programs and events. In 2018, the Company held 34 basketball tournaments, arranged a company outing to Lihpao Resort in Taichung, and hosted monthly birthday celebration. In addition, the Company held 20 meetings with foreign employees for discussions on care for new recruits, anti-drug issues, meal arrangement and fire prevention, etc.

員工社團活動類型

 Stainless Dinnerware at Staff Cafeteria and Optimized Meal Delivery Process

At the Taiwan headquarters, approximately 12,000 people dine at the staff cafeteria each month. Among them, 9,000 (75%) employees order lunch box and 3,000 (25%) choose to dine in. Employees may select where and when they want their meals. To protect employee health, respond to government policy and enhance company reputation on environmental protection, FENC started replacing melamine dinnerware with stainless ones, including 250 stainless plates, 300 stainless lunchboxes and stainless utensils. Meanwhile, to provide better food quality, the Company provides 80 customized thermal bags for lunchbox delivery to maintain the food temperature. The bags can also be stacked together, which keeps the food warm longer.

During the satisfaction survey this year, over 80% of employees favor the dinnerware replacement and the use of thermal bags, which protect employee health and improve dining quality. The Company received the certificate of appreciation from Taipei City Government, acknowledging its contribution for building a culinary culture that is environmental friendly and healthy for the employees.

 

 Earth Day Art Competition

To enhance environmental awareness among employees, FEDZ holds Earth Day Art Competition, and encourages participation with posters at staff cafeteria and emails to all employees. Immediately after the emails were sent, dozens of employees registered for the event. Their eagerness to participate shows care for the environment. The competition includes the employee and child divisions with 1 first place, 2 second place, and 3 third place awards chosen from each division. The winning entry from the employee division is "Protecting Environment; Cherishing Life"; the winning entry from the child division is "Environmental Protection; Responsibility for All." Prizes include bikes, appliances, and reusable shopping bags. The winners' works were posted in employee cafeteria. When the event came to a close, their works were hung on the Employee Wall of Fame.

 

 Moving into Far Eastern Home

Far Eastern Home, the dormitory facility at OTIZ has the capacity to house 1,464 residents. The facility was inaugurated on June 3rd, 2018. As of the end of 2018, 1,020 residents have moved in. The occupancy rate is 70%. The dormitory comes with a rich selection of public facilities, including reading room, theater, KTV, basketball court, badminton court and fitness center, which cater to employees' physical and mental health. The rooms can be divided to 2-person and 4-person layouts. All rooms are furnished with environmentally friendly wood furniture with independent bath facilities, energy saving lighting, and solar-powered water heating system. The dormitory facility balances comfort and environmental protection. The 2018 survey assesses 7 categories on employee satisfaction towards the facility, 6 categories saw improvement from the previous year. They are management service, cleanliness, bath facility, bedroom facility, recreational programs, and security equipment.

Far Eastern Home – My Home  OTIZ/ Zhen-Zhen He (Chinese)

Theater

Sport Center

 

 Providing Chinese Courses to Enhance Communication and Performance

Foreign employees are mainly in charge of operating machineries. Safety and familiarity with the equipment are beneficial for better performance, and therefore, language training is extremely important. Hsinpu Chemical Fiber Plant holds 2 sessions of Chinese courses each year for daily and work settings. At the end of each session, employees are graded based on oral exam and attendance. The top 3 performers would receive cash reward.

The foreign employees have greatly improved their language proficiency through the courses. Now, they can use basic Chinese to communicate with native employees, and improve faster when performing duties when they can ask questions at work. Language improvement helps advance labor safety and work performance while avoiding misunderstanding due to language barriers.

 

FENC is dedicated to protecting employees' basic human rights and building a work environment that ensures human rights. Hence, the Company acknowledges the principles and spirit set forth in International Labor Office Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, OECD Guidelines for Multinational Enterprises, UN Universal Declaration of Human Rights and The UN Global Compact. Human rights protection and labor policy at FENC are established in accordance with the local labor and gender equality acts. In 2018, the Company conducted training for managers responsible for human rights issues at all production and business sites. The human rights policy is signed into effect by managers as a pledge to our determination for human rights protection.

To fully protect employees' human rights, the Company provides 2 to 4 hours of training on human rights and labor regulations during orientation for new recruits. Employees also undergo repeated training regularly with a focus on employee conduct and corporate values. Monthly inspection and report on overtime and work hours are carried out at all sites. Investigations of irregularities are conducted by the headquarters. In addition, regulatory compliance is conducted quarterly at all sites to ensure that human rights regulations are followed. Violations are investigated, tracked and improved upon.

►FENC Human Rights Policy and Implementation

 

Gender Equality

FENC is devoted to the protection of maternity rights and creating work policies and environment that are gender neutral. In Taiwan, we are consistent with the spirit of Act of Gender Equality in Employment by designating breastfeeding room and providing parental leave. In 2018, the return rate of employees taking parental leave is 74%.

We enacted Regulations Concerning the Labor Protection of Female Staff and Workers to protect the rights of female employees in business sites in China. The regulations limit overtime and prohibit tasks that may potentially harm mothers and the babies in their wombs. The regulations also stipulate that employees returning after maternity leave shall receive equal pay for equal work.

In Vietnam, we provide workplace environment ideal for pregnant employees, such as avoiding tasks that might affect health and using specially designed chairs to reduce discomfort at work. Female employees who are 7-month pregnant may reduce working time by 1 hour per day while receiving full pay. They are also entitled to 5 days off for prenatal checkups and 6-month maternity leave. The factories also designate lactation rooms as well as areas for storing breastmilk. 

FENC has established measures to prevent, control and reprimand sexual harassment as well as providing channels for filing grievances. Comprehensive procedures have been established and applicable for all production sites. The employee filing for grievances may go through the departmental supervisor or Human Resources Department. The unit receiving the grievance claim shall establish a team with over 50% female members within 5 days to investigate such claim. The investigation shall conclude within 2 months and all information shall be kept confidential. The individual against which the claim is filed shall have the opportunity for rebuttal. In addition, we conduct training for supervisors and employees based on Sexual Harassment Prevention Act to prevent the occurrence of sexual harassment.

In 2018, there were no human rights violations, nor grievance claims in all production sites. The production sites also passed customers' review over human rights protection, child labor and labor conditions.

Occupational Safety and Health Policies and Objective

In order to establish a safe and healthy workplace that also provides comfort, while continuing to reduce the rate of workplace accidents and disasters, FENC established Occupational Safety and Health Policies as the highest guiding principle governing the management of safety and health of the Company. With "risk control" and "continuous improvement" as the management principle, operational safety is our utmost concern. The Company takes an active stand toward improving the work environment, manufacturing equipment and operational methods to ensure the safety and health of the workers and stakeholders.

⇒ Occupational Safety and Health Policies (Chinese)

 Establishing Safety, Health, Environmental Protection and Fire Fighting Task Force

On March 13th, 2018, FENC established the Safety, Health, Environmental Protection and Fire Fighting Task Force (SHEF) in China, which oversees 7 production sites.

1. Establish rules of procedure for meeting and supervise the implementation

The Promotion Team Meeting is held monthly and the SHEF managers of each production site shall attend. The meeting covers work report, policy promotion, experience sharing, exchange and coordination. The SHEF Leadership Team Meeting is held quarterly. During which, the SHEF Implementation Office presents the project plan to the SHEF Leadership Team, and the highest ranking managers from production sites take the opportunity to communicate with the SHEF teams. During 2018, 10 task force meetings and 3 SHEF Leadership Team Meetings were held.

2. Update regulatory changes and promote safety and health knowledge

SHEF Regulatory Promotion Center is in charge of collecting and analyzing regulatory changes and relay the information to each production site. In 2018, the center promoted information on 26 SHEF related laws and regulations. To engrain the culture of safety, health and environmental protection, the center started the quarterly SHEF magazine, which covers regulatory updates, managers' perspective, latest news, Company updates, article sharing and common sense. The center published 2 issues of SHEF magazine in 2018.

3. Reinforce employee training and improve professionalism
In 2018, a total of 108 participants attended the course on "Safety Leadership" that SHEF Implementation Office offered for the mid and high-level managers. For junior managers, the office offered courses such as "Job Safety Analysis" and "Accident Management." The courses attracted 128 participants. In addition, each production site shares training information and professional resources with other plants through SHEF Task Force. For instance, FEIW held the training on "Double Prevention Mechanism for Organizations." The course participants came from all plants. Fourteen junior managers from OTIZ visited the upstream petrochemical plant to learn about "work permit system."

4. Establish cross visit, mutual assistance and experience sharing mechanism
Observation meetings are held quarterly where SHEF personnel from each production site get the chance to visit other plants. The host factory introduces the highlights and reflections from SHEF management, which may serve as references for the visitors. Four observation meetings were held in 2018. In addition, SHEF Implementation Office convened the task force for 12 site visits at various production sites. They checked on the work conditions at each site and provided suggestions for improvements, such as adding on-site signage about occupational health and enhancing health checkup

5. Construct management system and smart management platform
In 2018, the statistical standards for accidents were established to analyze the data identify ways of improving management. The analysis is reported to the SHEF Leadership Team on a regular basis. In addition, the online work permit system was introduced and fully installed at Far Eastern Union Petrochemical (Yangzhou) Ltd. in 2018. In 2019, the online work permit system is expected to be installed at OPSC. SHEF teams planned to develop the potential risk control and tracking system in 2018, and in 2019, the teams plan to install SHEF smart training platform and smart logistics control system.

SHEF Task Force establishes short, mid and long-term goals. Through management and system, it is the hope that FENC will become the trend setter in the industry, encoding the safety culture and environmental protection in the DNA of each FENC employee.

 

 Professional Safety and Health Skills Listed as Mandatory for Managerial Promotion

The operation of polyester plants involves complex production process and equipment, which is why at Polyester Business in Taiwan, licensing in safety and health as well as experience in occupational safety, such as the experience as safety and health coordinator, are mandatory criteria as candidates for a managerial position. Managers overseeing explosion-proof area and dangerous tasks must pass the training for "process safety evaluation personnel." Additionally, Hsinpu Chemical Fiber Plant added 16 designated personnel in charge of safety and health management. All of whom are experienced in on-site production management, and will be able to connect safety and health to the needs of the employees.

Building Workplace Safety and Health with Labor-management Participation

FENC establishes Occupational Safety and Health Committee at all business sites, which is the highest authority on the review and discussion of safety and health management. Over 1/3 of the members are labor representatives. The Committee convenes quarterly and is responsible for the formulation, coordination and supervision of safety and health related issues at each plant to fully implement it management. Please refer to the Company website for details on the Occupational Safety and Health Committee for each business site.

The Occupational Safety and Health Committee at Operational Sites

Operational Sites Number of Committee Members Percentage of Worker Representatives
Headquarters 11 36%
Hsinpu Chemical Fiber Plant 24 42%
Kuanyin Chemical Fiber Plant 29 62%
Kuanyin Dyeing and Finishing Plant 22 50%
Neili Texturizing Plant 14 57%
Hukou Mill 12 33%
Oriental Petrochemical (Taiwan) Co., Ltd.- First Plant 17 35%
Oriental Petrochemical (Taiwan) Co., Ltd.- Second Plant 18 33%
Far Eastern Fibertech Co., Ltd. 12 33%
Oriental Petrochemical (Shanghai) Corp. 26 81%
Far Eastern Industries (Shanghai) Ltd. 28 64%
Wuhan Far Eastern New Material Ltd. 14 36%
Oriental Industries (Suzhou) Ltd. 23 87%
Far Eastern Industries (Wuxi) Ltd. 17 76%
Far Eastern Dyeing & Finishing (Suzhou) Ltd. 68 96%
Far Eastern Apparel (Suzhou) Co., Ltd. 33 61%
Far Eastern Apparel (Vietnam) Ltd. 81 72%

Occupational safety and health management is one of the key issues for labor relation at FENC. The collective bargaining agreement between FENC and employees as well as discussions during labor relation meetings and Occupational Health and Safety Committee meetings cover the following:

  • Provide personal protective equipment.
  • Establish labor relation management and occupational safety and health committee.
  • Labor representatives participate in the examination and review of safety and health issues as well as accident investigation. 
  • Provide work related training for workers.
  • Provide mechanism for workers to file for grievances. 
  • Workers have the right to refuse unsafe work. 
  • Schedule regular health checkup for workers.
  • Comply with regulations from International Labor Organizations.
  • Clearly define the procedure or system that workers shall follow when encountering safety or health related problems.
  • Clearly establish safety and health goals and ways to achieve such goals.

 Inviting Employees to Pledge for Safety

The most critical factor for occupational safety and health management is the participation of all workers. In order to fully implement the liability system for production safety, the plant set up stations at the factory gate on June 5th, 2018. When employees arrived at and left work, they were invited to leave their thumb prints to pledge for safety. Each division collected the thumb prints to paint the tree of safety. The drawings were framed and displayed on the bulletin to raise employees' safety awareness and to create the atmosphere of a safe workplace.

Develop Safety and Health Concepts Through Training

FENC provides regular trainings to make sure that every employee is familiar with occupational safety and health regulations as well as the mechanism of safety and health management. In 2018, the total training hours provided by the Company reached 54,372.
Training Type Number of
Classes
Number of
Trainees
Training Hours
On-the-job Training on Safety and Health 165 8,188 28,545
Health Management Training  32 3,853 14,005
Hazardous Chemical Training 60 1,297 2,552
Training for Radical Protection Personnel 5 42 351
Training on Emergency Response and
Personal Protective Equipment
31 1,810 6,780
Internal Safety and Health Auditor Training 4 147 406
Risk Control Training 12 562 1,733

 

 Protecting the Rights of Foreign Workers and Recruiting Foreign Employees for Safety and Health Management

FENC hires foreign workers at all production sites in Taiwan to assist with the assembly line. To fully implement training and management on safety and health for foreign workers, Hsinpu Chemical Fiber Plant and Kuanyin Chemical Fiber Plant recruited foreign management staff with expertise on safety and health in 2018. They are responsible for conducting safety and health training for foreign workers and communicating to help promote safety and health programs with enhanced management.

 

 Safety and Health Observation and Exchange

Hsinpu Chemical Fiber Plant and Kuanyin Chemical Fiber Plant in Taiwan scheduled site visits in June 2018 with 92 staff in attendance. In addition to visits to FEFC and OPTC, a special visit is scheduled at Dragon Steel for staff to learn about the safety and health practices. During the visit, participants learned about "active safety and health performance" and "5 defenses in occupational safety and health management." After the visit, participants shared their thoughts during a large-scale meeting to spread the knowledge to a wider audience.

 

 

 VR Training for Safety and Health

FENC offers regulatory trainings to make sure that all employees are familiar with safety and health regulations as well as the corporate safety and health mechanism. In addition, Hsinpu Chemical Fiber Plant and Kuanyin Chemical Fiber Plant scheduled 21 training sessions on "Safety and Health Regulation Series" for the staff with safety and health duties. The plants also scheduled 10 training sessions on "Zero Occupational Hazard with Advanced Warning" for shift managers. To make the courses more effective, participants are tested after class and rewarded for good performance.

In addition, after OPTC introduced the 3D VR training system in 2017, Kuanyin Chemical Fiber Plant also started planning at the end of 2018 to introduce training courses that incorporate VR. The courses, which were scheduled to start in the first quarter of 2019, simulate roof work and tasks involving openings. Comparing to trainings from the past, VR technology mimics the reality, allowing employees to go through training and be prepared without being exposed to actual danger and makes the training even more memorable.

Continuing with Occupational Safety and Health Management System

As of the end of 2018, FENC's 11 business sites have obtained OHSAS 18001:2007 certification. The plants in Taiwan are also TOSHMS certified, and they pass the yearly third-party audit. All certifications are currently valid.

In 2018, International Organization for Standardization (ISO) announced the ISO 45001 Occupational Safety and Health Management System, which will replace OHSAS 18001:2007 with a 3-year grace period. The second plant of OPTC introduced the certification in February 2018. After two preliminary reviews, the plant was ISO 45001 certified on June 15th, 2018, becoming the Company's first production site to obtain the new certification

Contractor Safety and Health Management

To FENC, contractors are important business partners. To ensure contractors' work safety, each production site notifies contractors of potential hazards with monitoring measures in accordance with Occupational Safety and Health Act and applicable regulations. In addition, each site promotes various management approaches to reinforce contractors' work safety.

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