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.
|Director/Section Chief and Above||89%||90%||90%||95%||96%||94%||150%||127%||172%|
Note：The percentage is derived by dividing average female salary by average male salary for the same rank of job.
|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 Between the Highest Individual Salary
and Median Salary of Other Employees
|Ratio of Salary Increase Between the Highest Individual Salary
and Median Salary of Other Employees
►Average and Median Annual Salary for Non-managerial Positions
|Average Annual Salary||(A)||799,700||817,063||916,594|
|Median Annual Salary||(A)||688,994||720,980||803,835|
|Number of Employees in
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
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.
Employee retirement policy at FENC is in accordance with all local regulations. In Taiwan, FENC initiated the pension system in 1980 and established the Employee Retirement Fund Committee, which meets regularly to monitor fund allocation. Over 50% of the committee members are labor representatives. The Company commissions Towers Watson to provide actuarial services, and each company’s contribution to employees’ pension fund falls between 4% and 10% of their full salaries. In July 2005, the Ministry of Labor initiated a new labor pension system. Employees enrolled in the new system and new recruits make 6% deduction from payroll for their pension contribution. The years of service employees have accumulated under the previous pension system remain, and pension withdrawal may be made upon retirement. All FENC employees are covered by the retirement pension system. In China, all production and business sites are enrolled in social insurance in accordance with Social Insurance Law of the People‘s Republic of China. The source of employee pension is from the endowment insurance under this system. Each company contributes approximately 19% to 20% to the pension fund. All employees are enrolled in the pension system. In Vietnam, employees are entitled to their pension as stipulated in Law on Social Insurance. In 2018, FEAV calculated the insurance premium based on labor wages and stipends, and contributed 17.5% for the social insurance. Please refer to 27. Retirement Benefit Plans in “Financial Report” for annual funds appropriated for retirement pension.
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 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.
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.
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.
|Operational Sites||Number of Committee Members||Percentage of Worker Representatives|
|Hsinpu Chemical Fiber Plant||24||42%|
|Kuanyin Chemical Fiber Plant||29||62%|
|Kuanyin Dyeing and Finishing Plant||22||50%|
|Neili Texturizing Plant||14||57%|
|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:
|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.|
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
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.