The Company keeps ongoing dialogues with staff through multiple channels to build consensus and optimize employee performance. From time to time, we conduct employee satisfaction survey and gain insights into trends in the labor market and employees’ needs with the help of outside consultants.
Pursuant to FENC Human Rights Policy, the Company holds regular labor relation meetings each year with minutes made public. Major policy decisions are made after thorough discussions are conducted between departmental managers and the labor union to ensure labor rights. Staff may express their opinions to the management through internal channels, including comment box and executive meetings. We are adamant about developing rapport with employees and avoid labor disputes. During the reporting period, there were no violations of freedom of assembly or collective bargaining agreement.

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.
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.

FENC has established 15 formal labor unions at the production sites. Other than U.S. locations, union membership is extended to all permanent employees except for executives who make policy decisions for the employers. For production and business sites in the U.S., all employees must join the labor union at the end of the probation period, and hiring of non-union members is prohibited. There are 4 production and business sites do not have formal labor unions, but the relationship between labor and management is harmonious. Labor and management meetings are convened quarterly and meeting minutes are published.

Statistics of FENC's Labor Unions in 2020

Production Site	Year of Establishment	Number of Members	Employee Participation Percentage
Hsinpu & Kuanyin Chemical Fiber Plant	1978	2,204	100%
Kuanyin Dyeing and Finishing Plant	1956	145	85%
Neili Texturizing Plant	1977	51	78%
Hukuo Mill	1989	183	92%
Oriental Petrochemical (Taiwan) Co., Ltd.	1997	268	80%
Oriental Petrochemical (Shanghai) Corp.	2009	166	94%
Far Eastern Industrues (Shanghai) Ltd.	2004	1,300	100%
Wuhan Far Eastern New Material Ltd.	2014	152	100%
Oriental Industries (Suzhou) Ltd.	2007	1,140	100%
Far Eastern Industrues (Wuxi) Ltd.	2007	634	100%
Far Eastern Dyeing & Finishing (Suzhou) Ltd.	2008	720	100%
Far Eastern Apparel (Suzhou) Co., Ltd.	2004	1,042	99%
Far Eastern Apparel (Vietnam) Ltd.	2007	4,196	93%
Far Eastern New Apparel (Vietnam) Ltd.	2015	2,882	98%
APG Polytech	2018	103	100%
Total		15,186	96%

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.

 

In addition, FENC is also committed to the compliance and practice of various labor standards. Through participation in labor standards related seminars and advocacy organizations including children, gender, forced labor, discrimination, female protection, poverty, OHS, etc. to obtain the latest international labor organization and labor standards information for inspection and compliance, so that employees and their families can obtain appropriate protection. FENC participated in 8 seminars organized by clients and advocacy organizations from 2019 to 2020.