Furloughed workers on the rise as manufacturers hurt by export slump

Taipei, April 7 (CNA) The number of furloughed workers in Taiwan edged higher at the end of March from the previous week as some export-oriented manufacturers saw their orders dry up, according to the Ministry of Labor (MOL).

The latest report released by the MOL on Thursday showed that manufacturers had 8,037 workers on unpaid leave programs at the end of March, up 747 from March 23.

The number of manufacturers that instituted unpaid leave programs reported to the Ministry of Labor also rose to 332 from 321 previously, MOL data showed.

Overall, the number of furloughed workers in Taiwan rose to 18,716 as of March 31, up 872 from the 17,844 recorded on March 23, while the number of employers with workers on unpaid leave also rose 43 from a week earlier to 2,427, the MOL said.

Wang Chin-jung (???), deputy head of the MOL’s Labor Conditions and Equal Employment Division, said a chemical company reported putting 600 employees on a furlough program during the week, the biggest such move in the manufacturing sector so far this year.

The company decided to have its employees take 3-13 days of unpaid leave a month for three months because its clients scaled back their orders, the official said.

In addition, Wang said, a hardware tools company reported that it was putting about 110 workers on unpaid leave for three months and a wiring manufacturer initiated a two-month furlough program for more than 80 workers.

Conversely, Wang said, a biotech company ended its furlough program, returning 150 workers to their full-time jobs during the week after reporting a recovery in orders.

Wang said the number of furloughed workers in the manufacturing sector has moved higher in recent weeks from 5,000 at the end of January to about 6,000 at the end of February and now 8,000 at the end of March.

The number of furloughed employees in the retail and wholesale sector rose by 77 workers to 1,398 this past week, while the number of furloughed workers in the support service sector, which is made up largely of travel agencies, rose 15 workers to 6,817, MOL data showed.

The MOL updates its furloughed worker data on the 1st, 8th, 16th, and 24th of every month, reporting unpaid leave numbers for companies that have registered their furlough programs with the ministry.

Most of the enterprises implementing furlough programs are small firms that employ fewer than 50 people.

Unpaid leave programs typically last for less than three months, with employees taking five to eight days of unpaid leave per month, according to the MOL.

Source: Focus Taiwan