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Labor Relations

Performance Assessment and Rewards & Punishments

      In accordance with the "Employees Normal-Time and Project Evaluation Guidelines" and "Employees Annual Assessment Guidelines", 100% of the employees are subject to annual performance assessment. The direct supervisors conduct initial appraisal of performance. The supervisors consider the performance of the subordinate's job performance for the year and conduct the evaluation. After the initial appraisal, the department’s indirect supervisor conducts the reassessment and then verifies the performance for the year in accordance with their responsibilities. Starting from 2015, the Company formulated the procedures and matters regarding the annual assessment of employees in order to promote the spirit of performance appraisal, awarding superior and eliminating the inferior and encourage performance of the employees. In addition, in order to make the system prudent and careful, we enhanced the audit level and established a review team to enforce the controversial administrative power based on the harmony of the employer-employee relationship.
      The operational performance bonus is divided into “assessment bonus” and “performance bonus” as prescribed in the “Key Points for the Implementation of Performance Bonus Plan of the State-owned Enterprises Affiliated to the Ministry of Economic Affairs”. Assessment bonus has to be granted in accordance with the results of work assessment; performance bonus is distributed when there is surplus in the company. The operational performance bonus of the year in all units is divided into “assessment bonus” and “performance bonus”. The total allocated amount of the bonuses was amended in 2011 by MOEA to the limit of no more than 4.4 months’ salary.

Collective Agreement

     The TSC Federation of Labor Unions entered the annual agreement with the Company for both parties to abide by in 2010 to protect the rights and interests of both parties, improve work efficiency and respect each other's exercise of rights of operation and labor to create a business development. The ratio of employees being protected by the collective agreement reaches 100%. In order to promote the unity and harmony of labor and capital, the seventh consultation meeting for the draft of the collective agreement was held in February 2020. Both the employers and the employees reached a consensus on the draft of the collective agreement, and such agreement has been reported to MOEA for approval.

Maintaining Employee Rights

     In terms of labor rights, TSC strictly abides by various labor laws. We have established employee opinion mailboxes and held employee seminars which allow the employees to offer open and unimpeded advice and appeals. TSC also commits itself to prevention and control measures for sexual harassment. Apart from advocating in orientation training, it also sets up special hotlines, faxes or e-mail boxes to handle sexual harassment complaints. If a complaint is received, the privacy of the parties should be protected during the investigation process in order to provide employees with a work environment free from sexual harassment. Education and training programs such as gender mainstreaming, sexual harassment prevention and gender impact assessment are continuously arranged from time to time to enhance employees' awareness of gender sensitivity and gender mainstreaming. In 2019, there was no occurrence of violation of human rights and discrimination nor labor complaints. If there is feedback from the employees, TSC will immediately reply and help them solve the problem.

Labor Conference

      The Labor Conference aims to dissolve differences and seek consensus. It consists of representatives of both employers and employees and discusses and effectively communicates relevant issues such as labor rights and working conditions. The proposals of the labor conference are all documented, tracked and understood at any time. All employees are provided with timely information on the meeting and an interactive mechanism is established. In addition, it also strengthens the relationship between the Company and its employees through multiple practices such as timely communication with labor representatives, issuing company publications and setting up mailboxes to enhance employee satisfaction. Both employers and employees timely exchange opinions or negotiate with each other in terms of the issues of common concern between them. In 2019, all units held a total of 86 labor conferences and there were 9 responses to proposals, enabling the labor-management communication channels to stay smooth, and no labor dispute or loss was caused by it.

Remuneration System

      The overall employee remuneration includes the monthly salary and variable pay (including bonuses). The monthly salary is based on the employee’s professional functions and job title, and the variable pay is distributed in accordance with the company’s operating performance and individual work performance regardless of gender or region. In 2019, the starting salary of new recruits through the joint examination of state-owned businesses of the Ministry of Economic Affairs was NTD 36,982 and that of the self-employed personnel through independent exams was NTD 24,206. The salary of new recruits is higher than the local (Taiwan) minimum wage. The ratio of basic salary and remuneration of women and men in the same department, seniority, position and rank is 1:1. The ratio of TSC’s highest annual personal income to the median annual income of all employees was 1.97 times. The percentage of the Company's highest annual total salary increase is consistent with the median percentage of other employees' average annual total salary increase. The salary was not adjusted in 2019


      In addition to providing basic protection for employees, TSC has also established the “TSC Employee Welfare Committee” in accordance with the “Employee Welfare Fund Act” and “Organization Regulations on Employee Welfare Committee” in order to strengthen the implementation of employee welfare programs in the affiliated units. The Employee Welfare Committee consists of 1 chairman, 1 vice-chairman, 21 members and 1 director-general assisting the chairman in handling daily business affairs. In addition, the business, general affairs and accounting divisions are set up to handle the planning and implementation of employee welfare issues. A harmonious working environment is therefore created by the perfect welfare system.

Nursery Benefits

      There is no difference regarding parental leave without pay due to gender, job titles and work areas. Both male and female employees can apply for parental leave without pay. In 2019, 11 employees (1 male and 10 females) applied for parental leave without pay and 7 were reinstated (0 male and 7 females). The 7 females continued their work after the reinstatement in 2019. In 2019, the retention rate for men and women both reached 100%.

A Sound and Complete Retirement System

      TSC handles retirement, compensation and severance in accordance with the “Regulations Governing the Pension, Severance and Survivor Payments for Employees of State-owned Enterprises Administered by the Ministry of Economic Affairs”. The pensions contributed are deposited in the special accounts of the trust department of the Bank of Taiwan. The Employee Pension Management Committee and the Supervisory Committee of Business Entities’ Labor Retirement Reserve are responsible for management and supervision. Pensions were allocated in accordance with the ratio of the total salary paid in 2019 (staff: 4.19%; worker: 0.26%). The pensions contributed are deposited in the special accounts of the trust department of the Bank of Taiwan managed and supervised by the Employee Pension Management Committee and the Supervisory Committee of Business Entities’ Labor Retirement Reserve. For workers choosing new pension system, 6% of their monthly salary is set aside as their retirement pension.

Organizational Adjustment

In recent years, due to the changes in the domestic economic environment, TSC has actively expanded its diverse management. To achieve corporate sustainable development, the business strategies are adjusted and organizational adjustment is conducted to move toward the development of the health industry oriented model.

TSC's major organizational adjustment cases in 2019 are as follows:

  1. To simplify administrative operations, the Hsinchu, Taichung, Chiayi, Tainan and Kaohsiung Offices were merged with Marketing Business Division to the Headquarters of Business.
  2. For the needs of occupational safety and health, the "Occupational Safety and Health Section" was added in the Xiaogang Sugar Refinery of Sugar Business Division.
  3. To cooperate with the business adjustment of the cooperation case of the TSC Hypermarket Business Division, the "Online Shopping Group" and "Property Management Group" and TSC Healthy Market of the Taipei Business Office were added in the Marketing Business Division.
  4. To promote circular economy, the Dong Hai Fen Livestock Farm was adjusted to "Dong Hai Feng Agricultural Circular Park", and the "Livestock Farm", "Renewable Energy" and "Park Management"are planned in accordance with the business planning. In addition, the "Organic Fertilizer Section" is also added to the Farm Division of Pingtung Operation Branch.

In the future, we will continue to review the rationality of the units, departmental organization and manpower allocation in accordance with our business strategy and business growth.

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