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Labor and Employer Relations
  • Employment Policies and Human Resources Overview
  • Communication Between Labor and Management

When it comes to human resources, FENC has always believed in finding the right person for the right position and giving employees the opportunity to develop their full potential. The Company puts such conviction to practice with a comprehensive organizational structure and human resources system. There are 16,468 employees at FENC, and 88% of them are permanent employees. Key positions at the Company are held by permanent employees. The Company also offers internal training, job rotation and internal promotion track for top performers, which demonstrate the comprehensive and diverse opportunities for career advancement at FENC.

Employment at all levels at FENC, including recruitment, selection, assignment, arrangement, evaluation, promotion, compensation, retirement, layoff, resignation, dismissal, training and welfare, does not discriminate on the basis of race, class, language, ideology, religion, political affiliation, place of ancestry, place of birth, gender, sexual orientation, age, marital status, physical appearance, facial features, mental and physical disabilities or past union membership. There were no occurrences of discriminatory conducts in 2018.

►Human Resource Overview in 2018

 

 

 
 

►Human Resource Profile in 2018

Region Taiwan China Vietnam Total
Type Year 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018
Permanent
Employee
Male(%) 71% 72% 73% 53% 52% 52% 19% 19% 19% 47% 49% 49%
Female(%) 29% 28% 27% 47% 48% 48% 81% 81% 81% 53% 51% 51%
Number 4,571 4,446 4,393 6,176 6,252 5,935 5,000 4,190 4,108 15,747 14,888 14,436
Temperary
Employee
Male(%) 83% 85% 86% 57% 59% 62% 8% 19% 19% 70% 68% 74%
Female(%) 17% 15% 14% 43% 41% 38% 92% 81% 81% 30% 32% 26%
Number 1,063 1,042 1,143 975 918 820 13 206 69 2,051 2,044 2,032
Total Male(%) 73% 74% 75% 53% 53% 53% 19% 19% 19% 50% 51% 52%
Female(%) 27% 26% 25% 47% 47% 47% 81% 81% 81% 50% 49% 48%
Number 5,634 5,488 5,536 7,151 7,170 6,755 5,013 4,274 4,177 17,798 16,932 16,468

Note:

  1. "Non-permanent employees" refer to foreign workers in Taiwan, contract workers or contractors in China, and employees under probation in Vietnam.
  2. The age cohort does not include non-permanent employees.
  3. No part-time workers are employed at any production and business sites.

Recruiting Great Employees from Online to Offline

As digital technology grows prevalent, FENC also utilizes social network and websites to post the latest corporate activities or job openings to attract talents. All business sites use QR Code to interact with domestic and international job candidates. Be it seasoned professional or new graduates, digital applications are bridging the distance between the Company and potential recruits.

Recruitment Platform for Production and Business Sites:

In Taiwan, FENC recruits talented graduates through online platform and campus recruitment programs. In 2018, the Company took part in 17 campus recruitment programs, including 9 recruitment meetings and 8 job fairs. In Shanghai and Suzhou, recruitment goes through online platform, private headhunters, internal referral, governmental employment services as well as the campus and on-site recruitment meetings.

FENC also offers internship for top-performing college students. Students from Yuan Ze University and Oriental Institute of Technology may gain field experience through the industry-academia collaboration program. In 2018, 54 students interned at FENC, including 7 who graduated in 2018. One of them went on to become a permanent employee at the Company. The industry-academia collaboration in Shanghai started in September 2018 with 22 interns. All of whom became permanent employees.

 
  One of Forbes World's Best Employers, and Ranking No.1 in Taiwan  

 

 

Forbes published the list of World's Best Employers in October 2018. The ranking is based on Forbes' Global 2,000 public companies in 2018. The magazine collaborates with Statista, the data research company, and administered over 430,000 copies of questionnaires to ask employees to rate their employers. Questions include whether they are willing to recommend the company to friends and family, and the ideal company they would recommend. The highest ranking 500 were chosen. In 2018, FENC, which ranked 149th, was named one of the best employers for the second consecutive year. This is a dramatic leap of 296 places from 445th in 2017. The ranking also puts FENC in the first place in Taiwan, and 2nd among global corporations in the Diversified Chemicals category.

 
   

 

 The Talent Pool Program with Oriental Institute of Technology

FENC is in need of more talents, and Oriental Institute of Technology is focusing on student employment. In 2018, the two teamed up and established the Talent Pool Program, which recruited 19 students from Department of Electrical Engineering, Department of Mechanical Engineering, as well as Department of Material and Fiber to undergo training at Hsinpu Chemical Fiber Plant and Kuanyin Chemical Fiber Plant. Students spent their entire senior years working full-time at the plants, while the plants provide apprenticeship and mentorship to guide students through comprehensive training. The internship includes NT$26,000 for monthly pay with free room and board. The goal of the program is to become the incubator of future managers. Their duties include installation, testing, inspection, maintenance and calibration of the machineries, which match these students' academic training. The students exemplify good work ethics and respect the attendance requirements. When they graduate in June 2019, job placement will be made for them based on their training and job requirements.

 

 Participation in Fengxian Spring Breeze Action to Eradicate Poverty

Fenggang County of Zunyi Prefecture, Guizhou Province is an area in poverty. FEIS took part in the job fair held by Fengxian Employment Promotion Center for Fenggang County in hope of providing relief to the long unemployment issue for the poor. In 2018, FEIS recruited 175 employees through this program. Corporations may recruit qualified local employees with this platform, and local governments may effectively solve unemployment for those in poverty, which is consistent with "No Poverty" of Sustainable Development Goals of the United Nations.

►Number and Percentage of New Employees in Taiwan

  2016 2017 2018
Number Percentage Number Percentage Number Percentage
Age 30 or under Male 120 28% 189 39% 184 35%
Female 47 31% 57 33% 66 44%
Subtotal 167 28% 246 38% 250 37%
Age 31-50 Male 120 7% 126 8% 104 6%
Female 42 6% 39 6% 47 7%
Subtotal 162 7% 165 7% 151 7%
Age 51 or above Male 26 2% 11 1% 4 0%
Female 4 1% 5 1% 2 1%
Subtotal 30 2% 16 1% 6 0%
Total 359 8% 427 10% 407 9%

Note:

  1. The number of new employees indicates the number of new permanent employees in an area in a specific year.
  2. The percentage is derived by dividing the number of the new employees of an age group by the total number of permanent employees of the same age group.

►Number of Employees Who Left the Company and Turnover Rate in Taiwan

  2016 2017 2018
Number Percentage Number Percentage Number Percentage
Age 30 or under Male 82 19% 101 21% 75 14%
Female 27 18% 42 24% 29 20%
Subtotal 109 19% 143 22% 104 15%
Age 31-50 Male 125 8% 113 7% 99 6%
Female 54 8% 62 9% 70 10%
Subtotal 179 8% 175 8% 169 7%
Age 51 or above Male 90 8% 127 12% 88 9%
Female 64 14% 65 16% 54 14%
Subtotal 154 10% 192 13% 142 10%
Total 442 10% 510 12% 415 9%

Note:

  1. The number indicates the total number of employees who left the Company in an area in a specific year.
  2. 2. The percentage is derived by dividing the number of employees of an age group who left the company by the total number of permanent employees of the same age group.

►Number and Percentage of New Employees in China

  2016 2017 2018
Number Percentage Number Percentage Number Percentage
Age 30 or under Male 1,395 104% 1,559 119% 1,518 132% 
Female 1,138 100% 1,057 98% 767 88% 
Subtotal 2,533 102% 2,616 109% 2,285 113% 
Age 31-50 Male 359 22% 537 32% 645 36% 
Female 400 23% 544 29% 557 29% 
Subtotal 759 22% 1,081 30% 1,202 32% 
Age 51 or above Male 5 4% 6 5% 13 9% 
Female 4 31% 3 20% 1 8% 
Subtotal 9 7% 9 7% 14 9% 
Total 3,301 55% 3,706 61% 3,501  59%

Note:

  1. The number of new employees indicates the number of new permanent employees in an area in a specific year.
  2. The percentage is derived by dividing the number of the new employees of an age group by the total number of permanent employees of the same age group.

►Number of Employees Who Left the Company and Turnover Rate in China

  2016 2017 2018
Number Percentage Number Percentage Number Percentage
Age 30 or under Male 1,388 103% 1,453 111% 1,485 129%
Female 1,182 104% 961 89% 835 95%
Subtotal 2,570 104% 2,414 101% 2.320 115%
Age 31-50 Male 472 29% 661 40% 667 37%
Female 528 30% 596 32% 640 33%
Subtotal 1,000 30% 1,257 35% 1,307 35%
Age 51 or above Male 25 22% 9 7% 11 8%
Female 22 169% 24 160% 19 146%
Subtotal 47 37% 33 24% 30 19%
Total 3,617 60% 3,704 61% 3,657 62%

Note:

  1. The number indicates the total number of employees who left the Company in an area in a specific year.
  2. The percentage is derived by dividing the number of employees of an age group who left the company by the total number of permanent employees of the same age group.

►Number and Percentage of New Employees in Vietnam

  2016 2017 2018
Number Percentage Number Percentage Number Percentage
Age 30 or under Male 345 54% 174 35% 291 59%
Female 2,061 73% 1,142 52% 1,499 71%
Subtotal 2,406 70% 1,316 49% 1,790 69%
Age 31-50 Male 114 39% 59 21% 118 40%
Female 611 49% 363 31% 621 52%
Subtotal 725 47% 422 29% 739 49%
Age 51 or above Male 3 150% 1 50% 2 67%
Female 2 18% 2 17% 4 27%
Subtotal 5 39% 3 21% 6 33%
Total 3,136 63% 1,741 42% 2,535 62%

Note:

  1. The number of new employees indicates the number of new permanent employees in an area in a specific year.
  2. The percentage is derived by dividing the number of the new employees of an age group by the total number of permanent employees of the same age group.

►Number of Employees Who Left the Company and Turnover Rate in Vietnam

  2016 2017 2018
Number Percentage Number Percentage Number Percentage
Age 30 or under Male 243 38% 254 51% 268 55%
Female 1,776 63% 1,620 73% 1,480 71%
Subtotal 2,019 59% 1,874 69% 1,748 68%
Age 31-50 Male 104 36% 126 44% 125 42%
Female 621 50% 663 56% 621 52%
Subtotal 725 47% 789 54% 746 50%
Age 51 or above Male 0 0% 1 50% 2 67%
Female 4 36% 5 42% 4 27%
Subtotal 4 31% 6 43% 6 33%
Total 2,748 55% 2,669 64% 2,500 61%

Note:

  1. The number indicates the total number of employees who left the Company in an area in a specific year.
  2. The percentage is derived by dividing the number of employees of an age group who left the company by the total number of permanent employees of the same age group.

FENC hired 407 permanent employees in Taiwan in 2018. The majority, 250 employees, which account for 61%, are under the age of 30. The Vietnam locations were gearing up for operation and in need of construction and management staff during the beginning phase. After review, the recruitment focuses on those over 30 years of age with field experience. In 2018, 415 permanent employees in Taiwan left the company. Among them, 183 retired, which account for 40%. The turnover rate is approximately 9%, which is lower than 13%, the national average for the manufacturing sector in Taiwan. The percentage of local employees hired from the cities and counties where the business sites are located in Taiwan is 69%.

In 2018, locations in China hired 3,501 new employees. Each plant has internal referral mechanism in place and encourages local employment. A total of 3,657 employees in China left the company in 2018. Although the turnover rate for operators remains high, the turnover rate for the Company's China locations declined from approximately 90% in 2014 to approximately 60% in the past 3 years, which is the result of continuous optimization of employee management, compensation and welfare. The percentage of local employees hired from the cities and provinces where the business sites are located in China is 47%.

In recent years, plants in Vietnam have been enhancing employee dialogue, providing recreational activities and improving workplace environment. The turnover rate declined sharply from the peak of 135% in 2014. The addition of 6 production lines in 2018 also increased the need for new recruits tremendously. The plant will control and reduce the turnover rate in order to meet the rising labor needs derived from increased production. The percentage of local employees hired from southeastern and southwestern provinces of Vietnam is 43%.

We value employee participation and promote labor-management dialogue through various mechanisms. Once discussions and resolutions concerning major decisions are made, the Company will discuss the issues with employees or employee representatives during the plant meetings. Prior to implementing major changes that may affect the rights of employees, public notices are made in accordance with the collective bargaining agreement and applicable laws and regulations. If the major changes affect employees' work, it shall be discussed in the form of collective bargaining agreement or in the labor union. All records shall be documented in the meeting minutes and made public within the notice period. Employees may reflect their opinions through various channels to the management. The purpose is to help employees understand the Company's position and approach to maintain a good relationship between the employer and employees, and to avoid labor disputes.

In 2018, FEIZ closed down due to eminent domain as a result of the City's urban development plan. The Company made referrals and placements for the employees after thorough discussions with them. Among whom, 14 individuals transferred to Suzhou administrative headquarters and OTIZ. The remaining employees received severance pay that is 1.3 times higher than the market average. There were no labor disputes.

 Adding Innovative Communication Channels for Better Labor Relation

FEAV values dialogues with employees and hopes to establish harmonious labor relation. Survey indicates that 21% of the employees lack trust in the existing communication channels, which is why FEAV adopts an innovative approach to solicit staff comments on a timely basis and simplify communication process with added confidentiality. In 2019, the goal is to improve employee satisfaction toward the Company's communication channel by 10% and reduce turnover rate due to insufficient communication with direct supervisors by 12%.

Conventional communication channels include comment box, official meetings and labor union. Newly added channels include:

In 2018, 58 employees went through the above referenced channels and provided suggestions on food quality, employee cafeteria, parking lot, and employees' spiritual health. After discussing with employees and evaluating alternatives, the Company decided to expand the cafeteria, monitor food quality, remodel the restroom, and increase parking areas. The Company also co-hosted social activities with the union committee, including family day, flower arrangement competition and fun games.

FENC abides by all international conventions concerning labor organizations and local regulations governing the business sites. All employees have the freedom of association and to join labor union, as well as the right to collective bargaining applicable by law. Currently, most of FENC's production sites have labor union in place to ensure employees' freedom of association and rights to collective bargaining. We have signed collective bargaining agreement with the unions or conduct regular labor relation meetings. All minutes are published. We value the rights of employees and their opinions. All key decisions are communicated with the union in full. Adjustments concerning labor rights are also discussed with employees during labor and collective bargaining meetings. Managers shall attend union meetings on a regular basis, and relay, address, negotiate or reply to issues reflected by employees. We don't intervene in any way into the establishment, operation and management of the labor union or collective bargaining. There were no violations against the freedom of association and collective bargaining in 2018. FENC has established 13 labor unions at various production and business sites, each with a minimum of 60% employee participation rate. There are a total of 13,252 union members with 91% employee participation rate.

►Statistics of Current FENC's Labor Unions

Production Site Year of Establishment Number of Members Employee Participation Percentage
Hsinpu & Kuanyin Chemical Fiber Plant 1978 2,261 100%
Kuanyin Dyeing and Finishing Plant 1956 150 99%
Neili Texturizing Plant 1977 55 82%
Hukou Mill 1989 340 92%
Oriental Petrochemical (Taiwan) Co., Ltd. 1997 298 75%
Oriental Petrochemical (Shanghai) Corp. 2009 201 100%
Far Eastern Industries (Shanghai) Ltd. 2004 1,440 100%
Wuhan Far Eastern New Material Ltd. 2014 166 100%
Oriental Industries (Suzhou) Ltd. 2007 1,377 84%
Far Eastern Industries (Wuxi) Ltd. 2007 423 61%
Far Eastern Dyeing & Finishing (Suzhou) Ltd. 2008 1,031 100%
Far Eastern Apparel (Suzhou) Co., Ltd. 2004 1,547 99%
Far Eastern Apparel (Vietnam) Ltd. 2007 3,963 88%

Note:

  1. FEFC does not have labor union in place. However, the labor relation is harmonious. Labor meetings are held quarterly with minutes published.
  2. The total employee counts at the chemical fiber plants (Hsinpu and Kuanyin) are 2,272. Labor union participation rate reached 100% after rounding.

 

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