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Human Rights Protection and Labor Relations

          TSC has been upholding the concept that the employees are the Company’s most important assets, and it also attaches great importance to the employees’ working environment, development and care. Continue to promote various employee care measures in an attempt to establish the working environment of enjoying work and life, warm and caring to create an organizational culture of good interaction.

          In terms of the human rights protection, in addition to abiding by various human rights laws and regulations strictly, TSC also recruits, appoints, rewards, and promotes talents based on qualifications, and our employees will not be discriminated or receive differential treatment on the ground of difference in race, class, language, thought, religion, political affiliation, place of ancestry, place of birth, gender, sexual orientation, age, marital status, appearance, facial features, physical and mental disabilities, star sign, blood type, and trade union membership.

          TSC protects human rights in every contract with suppliers in accordance with national human rights laws and the Labor Standards Act, requiring our suppliers to provide health and labor insurance for their employees, and not to perform forced labor, not to use child labor (15 years of age but under 16), and to implement gender equality in Employment. Once a supplier is found to violate regulations of gender equality in employment, freedom of association, prevention of sexual harassment, normal vacations, or no payment of overtime pay, such supplier is immediately required to make improvement within a certain time frame and may also be fined for breach of contract. If no improvement is made or frequent breach of contract is found, TSC can terminate the contract with such supplier. The human rights protection and requirements for manufacturers of major investment projects are the same as those for our suppliers. Suppliers who have cooperated with TSC for a long time also gradually attach importance to human rights.

          In terms of labor relations management, TSC has provided multiple communication channels and signed collective agreement with TSC Federation of Labor Unions for both the employer and the employees to follow. It is hoped that a happy enterprise aiming for a win-win partnership with its employees can be established. During the reporting period in 2022, there were no human rights violations or discrimination incidents for the employees(contracted) personnel, nor were there any labor complaints. In case of a labor complaint, it will be immediately responded, and assistance will be provided to help solve problems.

Performance Assessment, Rewards and Punishments

          The purpose of employee appraisal not only focuses on the annual performance assessment of the employees but also on the stimulation of the development of their potentials. The personnel appraisal is carried out in accordance with the Key Points of Practitioner’s General and Project Evaluation and Key Points of Annual Evaluation of Practitioners, and the appraisal methods are divided into annual evaluation, general and project evaluation, and evaluation for performance bonus. All the employees at TSC are subject to annual performance assessment. The direct supervisors conduct initial appraisal of the performance and submitted it to the indirect supervisor of the department for reassessment, and the performance is verified 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. In 2022, a total of 100% of employees of the Company received performance appraisal.

          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 total allocated amount of the bonuses was amended in 2012 by MOEA to the limit of no more than 4.4 months’salary.

Collective Agreement

          TSC and the TSC Federation of Labor Unions started to sign annual agreement from 2010 to protect the rights and interests of both the employer and the employees, increase work efficiency, and respect each other’s exercise of management rights and labor rights to jointly create business development. There were a total of 6 consultation meetings convened by both parties between 2012 and 2016, and a consensus was reached in the Collective Agreement Draft. Later, in response to the announcement of some changes in labor conditions of the Labor Standards Act, both parties continued to negotiate on matters related to the collective agreement, and a consensus was finally reached in the 7th consultation meeting in 2020. The signing of the collective agreement was completed on August 10, 2020, for both sides to abide by and work for; The ratio of employees being protected by the collective agreement reaches 100%.

Human rights training to protect the employees’ labor right and communication channels

          In order to strengthen and implement human rights, regular human rights-related courses are held, including the implementation of gender mainstreaming, sexual harassment prevention and control, the Convention on the Elimination of all Forms of Discrimination Against Women (CEDAW) and seminars or courses related to gender equality, labor laws and Labor Standards Act. There were 2,592 participants in 2022, and the total number of training hours was 4,861.5 hours, accounting for 80.55% of the total number of employees.

          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.

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 2022, all units held a total of 68 labor conferences. The proposals are all immediately responded, and the communication channel between labor and management is smooth, and no labor dispute or loss was caused by it.

Advance Notice of Operation Change

          Where TSC terminates a labor contract pursuant to Article 11 or the provisions of Article 13, the provisions set forth below shall govern the minimum period of advance notice:

✦Where a worker has worked continuously for more than three months but less than one year, the notice shall be given ten days in advance.

✦Where a worker has worked continuously for more than one year but less than three years, the notice shall be given twenty days in advance.

✦Where a worker has worked continuously for more than three years, the notice shall be given thirty days in advance.

          After receiving the advance notice referred to in the preceding paragraph, a worker may during working hours, ask for leave of absence for the purpose of finding a new job. Such leave of absence may not exceed two work days per week. Wages shall be paid during such leave of absence. Where an employer terminates the contract without serving an advance notice within the time limit prescribed in the first paragraph of this article, he/she shall pay the worker wages for the advance notice period.

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. The salary was not adjusted in 2022.The employed personnel through TSC′s independent exams was NTD 26,896. The salary of new recruits is higher than the local (Taiwan) minimum wage, and the ratio of standard salary of female and male entry-level employees to the local minimum salary was 107%. The ratio of basic salary and remuneration of women and men in the same department, seniority, position and rank is 1:1. The median ratio of TSC’s highest annual personal income to the annual income of all employees was 196%. 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.


          In addition to providing the numeration 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. 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 2022, 23 employees applied for parental leave without pay and 13 were reinstated. In 2022, the retention rate for women 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 2022 (staff: 4.62%; worker: 0.16%). For workers choosing new pension system, 6% of their monthly salary is set aside as their retirement pension.

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