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. Though the world was starting to see a downward trend for the COVID-19 pandemic in 2022, resurgence was still observed. In Taiwan and mainland China, in particular, the pandemic reached its peak. The harsh circumstances disrupted the plan for administering the employee satisfaction survey for the reporting year. However, the survey has been scheduled as a priority task for 2023 with an extended focus to assess employee satisfaction from the overseas locations.

As stipulated in the Human Rights Policy, which is referenced in Human Rights Protection , the Company respects employees’ freedom of association and rights to form labor unions and conduct collective bargaining at their discretion. Units with established labor unions shall discuss the details in union agreements once every three years. Union recommendations are respected, fully discussed and enacted upon resolutions. In addition, employees may express their opinions to the management through a multitude of internal channels, including the comment box, executive meetings and grievance mechanism. FENC strives to maintain harmonious labor relations and avoid labor disputes. There were no violations against the freedom of association and collective bargaining during the reporting year. The freedom of association and rights to collective bargaining are paramount at FENC. Hence, the Company conducts human rights due diligence among stakeholders to prevent the risks posed by salient human rights issues.

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 U.S. party may terminate the contractual relationship at any time.

There are 15 labor unions among all FENC sites. With the exception of the 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 among all production sites has reached 95%. Currently, four FENC sites do not have organized labor unions, but they have been maintaining harmonious labor relations with labor relations meetings held quarterly and minutes made public. Agreements made during the labor management meetings serve as the legal basis for employee protection. At FENC sites without union representation, the collective bargaining agreement offers protection to 100% of the 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	2,102	99%
Kuanyin Dyeing and Finishing Plant	1956	134	89%
Neili Texturizing Plant	1977	45	75%
Hukuo Mill	1989	187	93%
OPTC	1997	271	82%
OPSC	2009	163	96%
FEIS	2004	1,229	99%
WHEF	2014	135	100%
OTIZ	2007	1,257	94%
FEIW	2007	522	100%
FEDZ	2008	647	100%
FEAZ	2004	802	99%
FEAV	2007	5,521	99%
FENV	2015	3,593	99%
APG Polytech	2018	115	100%
Total		16,723	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.

 

FENC co-founded the Association of Industrial Relation, R.O.C. in 1981. The association holds quarterly board meetings for the directors and supervisors and conducts training and seminars with a focus on labor-management issues. Serving the role of the executive director, FENC wishes to advocate labor rights, promote labor-management cooperation and build harmonious labor relations.