Taipei, The Formosa Plastics Group (FPG), one of Taiwan's leading conglomerates, said Thursday it will increase the salaries of its employees across the board by 3.378 percent, starting in July.
With the wage hike, the group's 33,000 employees will see an additional NT$1,800 (US$58.03) per month on average on their pay slips, according to the group.
The decision, which was reached in a meeting earlier in the day with its workers' union representatives, will cost FPG NT$59.4 million per month, the group said.
This is the fifth consecutive year that FPG is raising salaries by more than 3 percent, but the 3.378 percent agreed on is the lowest over the fiveyear period.
FPG President Wang Wenyuan said the group is seeking the unions' support for its efforts at sustainable development amid global factors such as expected higher oil prices in the second half of the year and the fallout from the extended trade war between the United States and China.
Wu Chichung head of the worker's union of Nan Ya Plastics Corp., said that after being briefed by FPG's four major subsidiaries on their operating performance, the union representatives agreed to work with the companies amid the challenges as they have been affected by the U.S.China trade war.
Therefore, the FPG workers' unions agreed to the 3.378 percent salary raise, although they were hoping for a 3.5percent hike, Wu said.
He said Wang showed goodwill during the meeting and promised that FPG would offer more benefits to its employees if the global trade tensions abated.
Apart from Nan Ya Plastics, FPG's other major subsidiaries are Formosa Plastics Corp., Formosa Chemicals & Fibre Corp., and Formosa Petrochemical Corp.
In 2015, FPG offered a 3.5percent pay raise to its employees with a onetime bonus of NT$6,000 per person. In 2016, the salary increase was 3.5 percent and the bonus was NT$12,000, while in 2017 the group gave a 3.8 percent pay hike without a bonus.
Last year, FPG raised its employees pay by 4 percent and gave a NT$4,000 bonus.
Source: Focus Taiwan News Channel