Taipei, The Formosa Plastics Group (FPG), one of Taiwan's leading conglomerates, announced Tuesday that it has decided to raise wages by 4 percent, starting from July.
The 4 percent wage hike is equivalent to an average pay increase of about NT$2,100 (US$68.67) per month, and with a workforce of 33,000 people, it will cost the group an additional NT$69 million a month, according to the company.
The group decided to raise salaries by more than 3 percent for the fourth consecutive year after meeting with representatives of company unions on Monday.
FPG President Wang Wen-yuan (???) said the group was happy to take good care of its employees by providing better benefits, but he also told union representatives he hoped employees would support the group's future sustainable development.
The unions also asked management to further compensate the contribution of employees with additional bonuses, and Wang said he would discuss the request with executives of the conglomerate's four major entities.
The four major entities of the FPG are the flagship Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp.
They are all listed on the Taiwan Stock Exchange and rank among the leaders in market capitalization on the exchange.
In early February, Wang said the conglomerate was expected to issue year-end bonuses in early 2019 equivalent to at least six months of salary, which would equal the six-months-salary standard used for the year-end bonus paid in early 2018.
The payout to employees in early 2018 also included an additional NT$22,000 bonus, but Wang has not made any commitment on whether that will be increased.
In the first half of 2018, the four major FGP entities posted a record combined net profit of about NT$130 billion, up 37.8 percent from a year earlier, because of rising product prices driven by steadily increasing crude oil prices.
Analysts said the group is expected to continue to see improving profitability in the second half of the year as the peak season for the petrochemical sector approaches.
Source: Focus Taiwan News Channel