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Formosa Plastics Group to raise wages by 4.52%

Formosa Plastics Group to raise wages by 4.52%

Taipei, July 1 (CNA) Formosa Plastics Group (FPG, ????), one of Taiwan's leading petrochemical conglomerates, said Wednesday that the group has decided to raise wages for its employees by about 4.52 percent following negotiations with its labor union. The hike includes a 3.5 percent raise in monthly salaries and NT$6,000 (US$193) in allowances for the entire year, which represents a 4.52 percent increase in monthly pay for employees. Before the decision, the union had demanded a 4 percent raise in wages and a NT$10,000 increase in allowances. FPG President Wang Wen-yuan (???) finalized the increase. The 4.52 percent hike was higher than a 3.55 percent rise seen a year earlier, and also the highest since 2011, when the group boosted wages by 5.26 percent. The union said that although the hike was lower than it had asked for, the amount remained acceptable. The compensation hike became effective immediately and will continue until June 30, 2016. The management and the union are expected to launch another round of talks prior to June 30 to decide on the next raise. FPG said the wage hike reflects the group's optimism toward its bottom line as international crude oil prices have been recovering from a plunge seen earlier this year. The group said that if crude oil prices continue to range between US$60 and US$70, its 2015 profitability will improve from last year. Formosa Plastics Corp. (??), the group's flagship company, posted NT$2.83 in earnings per share for 2014, down from NT$3.25 recorded in 2013, due to a dive in international crude oil prices. The union said that due to the optimistic forecast about the 2015 earnings, the group is expected to issue year-end bonuses equivalent to wages of no less than five months. The group said that it will hold a meeting by the end of this year to decide on the exact amount of the bonuses. Shares of Formosa Plastics rose 0.28 percent to close at NT$72.70 on the Taiwan Stock Exchange Wednesday. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-23 02:28 GMT+08:00