FENC engages in consistent employee dialogues through multiple channels to build cohesion and enhance employee performance. The Company conducts the employee satisfaction survey and seeks assistance from external consultants for insights on trends in the labor market and to cater to employee needs with precision.

Adhering to FENC Human Rights Policy, the Company respects the rights of employees from all production sites to form labor unions at their discretion. Units with established labor unions shall discuss the details in union agreements once every 3 years. Union recommendations are respected, fully discussed and enacted upon resolutions. In addition, labor management meetings are held annually with minutes made public. Major policy decisions are deliberated after departmental managers and the labor union conduct thorough discussions during the meeting. Employees may express their opinions to the management through internal channels, including the comment box and executive meetings. The Company is determined to maintain rapport with employees and avoid labor disputes.

Regulation Governing Layoff Notice Period

Taiwan	Based on Labor Standards Act and the Act for Worker Protection of Mass Redundancy, employees shall be notified prior to the termination of employment contracts. Applicable regulations are covered in the internal management documents within the Company.
Mainland China	Labor Law of the People’s Republic of China stipulates that employees shall be notified in writing 30 days prior to the termination of employment. Applicable regulations have been included in the internal management document.
Vietnam	According to the Labor Code of Vietnam, employees under labor contract without time limitations shall be notified 45 days in advance prior to termination of such contract. Employees under labor contract with a time limitation shall be notified 30 days in advance. Applicable regulations have been included in the internal management documents.
Japan	Labor Contract Act stipulates that employers shall not terminate employment contracts without objective circumstances.
U.S.	Employment relationships are presumed to be at-will under the U.S. labor law, where either party may terminate the contractual relationship at any time.

There are 15 labor unions among all FENC sites. With the exception of U.S. locations, all employees, excluding managers involved in executive decision making, may join the labor union. All hourly-waged workers in the U.S. must join the union upon completing the probation period, and the hiring of non-union workers at the plants is not allowed. Union participation at all production sites has reached 95%. Currently, 4 FENC sites do not have organized labor unions, but have been maintaining harmonious labor relations with labor relations meetings held quarterly and minutes made public. Agreements made during the labor management meetings offer umbrella protection over 100% of the permanent employees with union membership. At FENC sites without union representation, the coverage is 100% of all permanent employees.

Statistics of Current FENC's Labor Unions

Production Site	Year of Establishment	Number of Members	Employee Participation Percentage
Hsinpu & Kuanyin Chemical Fiber Plant	1978	2,185	100%
Kuanyin Dyeing and Finishing Plant	1956	135	91%
Neili Texturizing Plant	1977	60	78%
Hukuo Mill	1989	203	92%
Oriental Petrochemical (Taiwan) Co., Ltd.	1997	337	80%
Oriental Petrochemical (Shanghai) Corp.	2009	162	95%
Far Eastern Industrues (Shanghai) Ltd.	2004	1,259	100%
Wuhan Far Eastern New Material Ltd.	2014	138	100%
Oriental Industries (Suzhou) Ltd.	2007	1,235	100%
Far Eastern Industrues (Wuxi) Ltd.	2007	668	100%
Far Eastern Dyeing & Finishing (Suzhou) Ltd.	2008	715	100%
Far Eastern Apparel (Suzhou) Co., Ltd.	2004	983	99%
Far Eastern Apparel (Vietnam) Ltd.	2007	4,327	90%
Far Eastern New Apparel (Vietnam) Ltd.	2015	3,578	98%
APG Polytech	2018	155	100%
Total		16,140	95%

Note: 1. OGM, FEFC, FEPV and FIGP do not have labor union in place. 2. Agreement between APG Polytech and the labor union stipulates that all wage workers at the plant, including technicians and operators, must be union members. Salaried workers such as managerial and administrative staff as well as high-level technicians are exempt.

 

Furthermore, FENC founded Association of Industrial Relation, R.O.C. with the business community, labor representatives, scholars and experts on August 14, 1981. The association aspires to build labor management cooperation and harmony in labor relations to ultimately achieve workplace dignity and higher competitiveness.

Far Eastern New Century had no human rights violations in 2021. We established the Speak Up policy, a grievance mechanism with anonymity, confidentiality, convenience, and independence, by the end of 2021. Our Speak Up mailbox accepts cases 24/7 and provides a multi-language interface. When it comes to human rights violations, we have a complete response mechanism. We will immediately set up a case number when an interested party files complaints, arrange a special team depending on the case’s situation and convene members from the unit supervisor, human resources, audit, legal affairs, and other members. Adhering to the principles of fairness and impartiality, in-depth investigations are conducted in accordance with laws and company regulations, and cause analysis is carried out to propose remedy and prevention policies.