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. FENC’s most recent employee satisfaction survey was administered in 2023 throughout its global locations. The survey aims to gauge the overall employee contentment and engagement and delves into whether employees comprehend the objectives of their work, the level of happiness at work and the stress they experience in their job roles, among other topics. The overall satisfaction reached 78.4%, and FENC has established improvement plans based on the results. Details are included in Stakeholder Dialogue.

Employee Satisfaction Survey

	2020	2021	2022	2023	Future Goal
Employee Satisfaction	84%	87%	87%	78%	80%
Total Questionnaires Distributed	3,481	3,534	3,534	18,576	-
Total Questionnaires Returned	2,796	2,810	2,810	15,473	-
Response Rate	80%	80%	80%	83%	85%
Location	Taiwan	Taiwan	Taiwan	Global	Global

Note: The Company conducts a satisfaction survey every two years.

 

Exit Interview and Survey

At FENC, employees who are departing undergo exit interviews arranged by the human resources units. While providing offboarding information, the interviews aim to solicit suggestions for improvement in a relaxed atmosphere. In 2023, the Company launched the online exit survey applicable across its global sites in six different languages. The survey consists of four categories of questions. “Basic Information” constructs profiles of departing employees to predict the types of employees with the likelihood to leave the Company. “Satisfaction Towards Company Policies” provides a holistic probe into employees’ experience at work. “Top Three Company Policies” performs differential analysis to identify the sticking points for departing employees. “Analysis of Reasons to Resign” includes 19 choices, and the answers are analyzed as a reference for employee care systems and policies.

The top three areas of dissatisfaction identified in the survey are “the plant environment,” “the relationship between female employees and the company culture” and “welfare.” FENC has established improvement measures such as welfare enhancement, continuous promotion of a female-friendly workplace, career development training for female employees and improvement of plant environment.

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. There were no violations regarding freedom of association and collective bargaining in 2023. 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, three 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	1,930	99%
Kuanyin Dyeing and Finishing Plant	1956	150	99%
Neili Texturizing Plant	1977	47	78%
Hukuo Mill	1989	185	93%
OPTC	1997	244	83%
FEIS	2004	1309	98%
WHEF	2014	128	100%
OTIZ	2007	1,239	96%
FEIW	2007	514	100%
FEDZ	2008	584	100%
FEAZ	2004	721	99%
FEAV	2007	4,489	97%
FENV	2015	2,957	99%
FEPV	2023	1,832	82%
APG Polytech	2018	106	100%
Total		16,435	95%

Note: 1. OGM, FEFC 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.