Taipei-Chunghwa Telecom Co., one of the largest telecom services providers in Taiwan, has decided to raise wages for its employees by 3 percent on average, effective from Jan. 1, 2020.
The upcoming wage hike, which obtained the greenlight from a board meeting earlier this week, is expected to benefit more than 20,000 employees, the company said.
Some employees could see their wages rise by more than 5 percent next year because their performance is better than that of their peers, according to the telecom operator.
Chuanghwa Telecom said the wage increase aims to fulfill the company's corporate responsibility advocated by the government, while also enhance the employees' welfare and boost morale, which could push up consumption and eventually benefit the local economy.
In addition, the wage increase is expected to help Chunghwa Telecom persuade its employees to stay and lure newcomers at a time when Taiwan is gearing up to develop the 5G technology and needs a strong talent pool, the company said.
Taiwan has designated 2020 as the first year of the 5G era for the country. Chunghwa Telecom are among the major telecom operators to join 5G spectrum auctions to be held by the government later this year.
In addition to the 5G technology development, market analysts said, Taiwan's telecom industry also needs talent to develop emerging technologies, such as artificial intelligence and big data.
In the first nine months of this year, Chunghwa Telecom posted NT$152.29 billion in consolidated sales and NT$3.22 in earnings per share, which showed the company failed to catch up with about three-fourths of an earlier forecast of NT$220.56 billion in consolidated sales and NT$4.4-NT$4.6 in EPS for the entire 2019.
The lower-than-expected sales and EPS for the nine months largely resulted from escalating competition in mobile telecom, analysts said, adding it was unlikely for Chunghwa Telecom to meet the 2019 guidance as the fourth quarter is another period of fierce competition.
On Friday, shares of Chunghwa Telecom rose 0.44 percent to close at NT$113.50 on the Taiwan Stock Exchange, where the benchmark weighted index ended up 0.66 percent at 11,525.60 points.
Source: Focus Taiwan News Channel