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Nan Shan Life Insurance denies report of large layoffs
Taiwan News, Staff Writer
2014-02-26 04:52 PM
A local media quoted an unnamed source Wednesday saying that Nan Shan Life Insurance Co., one of the leading insurer in Taiwan, sacked 225 employees Tuesday without advance notice, drawing questions of violating labor law. The company denied the report on sudden layoff, explaining that the move was targeting only at staffs with poor performance based on their year-end evaluation. Nan Shan Life added that the layoff compensation was made in accordance with the labor law or better.

According to a report from Apple Daily News, Nan Shan Life has cut two third of its workforce mainly at its real estate department and immediately blocked all employee access to personal email accounts and computer passwords, affecting normal operation and leading to the chaos inside the company. The employees on lay-off list were informed by their high-level supervisors one by one in private, said the report, and most of them were senior employees who joined Nan Shan Life before it was sold to a Taiwanese conglomerate in 2011 by their mother company American International Group (AIG), a U.S.-based global insurance organization.

Nan Shan Life's labor union confirmed the report and said that the latest layoff plan aiming at restructuring the back office force; around 5 percent of an estimated 4,000 employees of this function were sacked. The union said they have not received any written complaint so far but will watch closely its development.

Nan Shan Life Insurance Co. provides insurance services in Taiwan, which offers insurance policies to approximately 4.2 million policyholders with protection and financial planning, according to Bloomberg. It serves customers through a network of 24 branches and approximately 400 agency offices. AIG inked a deal to sell Nan Shan Life to Ruen Chen Investment Holding Co. for US$2.15 billion in cash in 2011.

Ruen Chen, created for the Nan Shan acquisition, is 80 percent owned by Ruentex Group, a Taiwan-based conglomerate, and 20 percent owned by Pou Chen Corp. Samuel Yin, the chairman of Ruentex Group, is now the managing director of Nan Shan Life. In the deal, Yin promised that the company name, staff pay and bonus plan will be left unchanged for two years starting from the acquisition in 2011.

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