At FENC, labor rights take precedence in policy considerations for human resources. We acknowledge and comply with the principles and spirit set forth by International Labor Office Tripartite Declaration of Principles, The OECD Guidelines for Multinational Enterprises, UN Universal Declaration of Human Rights and The UN Global Compact. The Company has well-established complaint channels. In cases of any human rights violation, employees may file such claims through the human resources units of all FENC sites.
In 2020, there were no human rights violations, nor grievance claims at all production sites from all stakeholders. The production sites also passed customers’ review over human rights protection, child labor and labor conditions.

2018	The Company established FENC Human Rights Policy, which is founded on the respect for local culture and customs at each FENC sites.
2019	Managers in charge of human rights promotion at all FENC sites have been fully informed of FENC Human Rights Policy, which has been signed and enacted. Meanwhile, the Company ensures employees’ understanding of this policy and awareness of their own rights through all means possible.
2020	FENC conducted human rights due diligence (HRDD) at all Company sites. Based on FENC Human Rights Policy, the risk assessment is further divided into 8 categories of human rights risks. HRDD focuses on “the likelihood of risks” and “the degree of impact on the Company”. A survey was administered to identify human rights risks, followed by investigation to determine their impacts on the Company. All FENC employees are covered in HRDD, and improvement measures have been implemented by human resources supervisors at all sites based on the HRDD report to protect employees’ human rights.

 

Human Rights Policy, Stakeholders and Authority

Human Rights Policy	Content and Implementation	Stakeholders	Authority
No Forced Labor	Content FENC eradicates all forms of forced labor. Implementation Abide by the government's labor laws and international regulations, and does not force or coerce any unwilling employees to conduct labor services. FENC 100% respects the wishes of personnel during the recruitment and employment process, and prohibits forced labor and human trafficking. If there are related violations, employees can complain to the complaint channel.	All employees	Each unit
Bans Child Labor	Content FENC bans child labor. Implementation FENC clearly declares against any child labor.	Applicants	HR
Meeting Just and Proper Wage	Content Employees are entitled to just and proper compensation for the work performed. The compensation shall secure a life of dignity for the employee and his/her family, and supplemented with social security in other forms when necessary. Implementation FENC ensures that employee salary is higher than the local minimum wage and provides employee benefits.	All employees	HR
Work and Break Hours	Content Employees are entitled to rest and leisure, including reasonable cap on work hours and regular paid vacation. Implementation Provide employees with special leave on a regular basis and not to force employees to work beyond the maximum daily working hours stipulated by local laws. In order to ensure the protection of employees' human rights, two to four hours of human rights and labor-related legal courses are provided during the training of new employees. And regularly conduct refresher training on employee codes and corporate values. We check the overtime and working hour reports of all bases every month, and if there are any abnormalities, the headquarters will investigate. In addition, through quarterly Regulatory Compliance System to ensure compliance with relevant human rights norms, if there are violations, investigations and tracking improvements will be conducted.	All employees	Each unit
Freedom of Association	Content Employees are entitled to form association and join labor union in order to protect their rights. Implementation FENC respects the employees’ rights to choose, form, join or refuse to join labor union or any other forms of employee organization.	All employees	Each unit
Equality and Respect	Content Employees are entitled to equal pay for equal work without any discrimination. Implementation FENC is against all forms of discrimination, treating all employees with respect and valuing diversity as well as equality. 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. We dedicated to building a workplace with respect, safety and equality.	All employees	Each unit
Fight Against Harassment	Content Employers should fight against all forms of harassment. Implementation FENC ensures a workplace that is free of sexual, mental, physical and verbal harassment, abuse and threat.	All employees	Each unit
Maternity Protection	Content FENC protects female employees. Implementation Please refer to Gender Equality as below.	Female employees	Each unit

FENC is devoted to complying with all labor standards and putting them into practice. The Company participates in seminars and advocacy groups that address labor standards related to children, gender, forced labor, discrimination, women’s protection, poverty as well as occupational safety and health. We keep abreast of the latest labor standards and updates from international labor organizations to ensure compliance and the protection of employees and their families.

Gender Equality

FENC values gender equality. We are keen on creating gender-friendly workplace and system. While the conglomerate spans across industries from the upstream to downstream, the up- and midstream industries rely more on chemical related expertise where a higher concentration of the work force is male. The downstream, which consists mainly of the textile industry, is composed of a higher percentage of female employees. Overall, the ratio between female and male supervisors are 2:5, which is consistent with the industry chain distribution. Corporate expansion also expanded the number of supervisors by 52% in the recent decade. Among them, the number of female supervisors grew by 64%. The statistics reflect the Company’s acknowledgement of and fair treatment to the hard work put in by female supervisors with the reward they deserve. The Company is also determined to incorporate gender equality as part of its corporate system and culture.

Gender Comparison by Position

In 2020, 92% of the employees who took maternity leave returned to their posts, marking a noticeable increase of 12% comparing to 2019. The main contributor is the family-friendly workplace that the Company has provided, including a robust family care leave and deputy system. We promote work-life balance, giving employees the ability and willingness to take care of their work and families.

Application of Parental Leave and Returning Statistics in Taiwan

		2018	2019	2020
Entitled to Parental Leave	Male	265	275	229
	Female	117	117	96
	Total	382	392	325
Number Applied	Male	3	4	2
	Female	22	22	48
	Total	25	26	50
Number Should Returned	Male	3	1	0
	Female	24	19	41
	Total	27	20	41
Number Returned	Male	3	0	-
	Female	17	19	35
	Total	20	19	35
Return Rate	Male	100%	0%	-
	Female	71%	100%	85%
	Total	74%	95%	85%
Returned over One Year	Male	0	1	-
	Female	9	15	12
	Total	9	16	12
Retention Rate	Male	0%	33%	-
	Female	90%	88%	92%
	Total	69%	80%	92%

Note： 1. Return Rate = Number Returned / Number Should Return 2. Retention Rate = Returned over One Year / Number Returned Last Year

 

Gender equality and applicable regulatory mandates are respected at all FENC business sites. We are consistent with the spirit of Act of Gender Equality in Employment in Taiwan as well as Regulations Concerning the Labor Protection of Female Staff and Workers in China. We protect the rights of female employees, offering parental leave and breastfeeding room at our facilities. We also limit overtime and prohibit tasks that may potentially harm mothers and their babies. Employees returning after maternity leave receive equal pay for equal work. We provide workplace environment ideal for pregnant employees, such as avoiding tasks that might affect their health and using specially designed chairs to reduce discomfort at work. Female employees who are 7-month pregnant may reduce working time by 1 hour per day while receiving full pay. They are also entitled to 5 days off for prenatal checkups and 6-month maternity leave. The factories also designate lactation rooms as well as areas for storing breastmilk.

FENC has established measures to prevent, control and reprimand sexual harassment and provides channels for filing grievances. Employees may file such grievance claims through departmental supervisors or Human Resources Department. The unit receiving the claim shall establish a team within 5 days of receiving the claim with over 50% female members to initiate the investigation. The investigation shall conclude within 2 months and all information shall be kept confidential. The individual against which the claim is filed shall have the opportunity for rebuttal. We also conduct regular training for the entire staff to prevent any occurrence of sexual harassment.

Besides, according to The Convention on the Rights of Children of the United Nations, children have an inherent right to life. We should ensure the survival and development of children. FENC spares no effort in protecting and caring for children, which is specifically demonstrated in FENC's policies and measures for maternity protection and friendly nurturing. At the same time, FENC's operating bases attach importance to the gender equality system and comply with the local laws. The specific actions are as follows:

1. Maternity Protection
   Protective measures are taken for female employees engaged in work that poses a maternal health hazard, restrict overtime or prohibit work that is potentially dangerous to mothers and babies, and employees who take maternity leave and parental leave are paid equal work after reinstatement, etc. Female employees who are 7-month pregnant may reduce working time by 1 hour per day while receiving full pay in Vietnam. They are also entitled to 5 days off for prenatal checkups and 6-month maternity leave. The factories also designate lactation rooms as well as areas for storing breastmilk.
2. Friendly Nurturing Measures
   FENC provide maternity leave, maternity allowance subsidies, and provides special agencies for childcare, so that children can receive good care. In addition, there are scholarships and grants for children of employees to support children's right to education.