TAIPEI (Taiwan News) -- Formosa Plastics Group (FPG, 台塑) gave its employees a 3.378 percent pay raise this year.
After negotiations between FPG President Wang Wen-yuan (王文淵) and workers' union representatives, the two sides announced on June 27 that they had agreed to raise the wages by 3.378 percent, but there was no bonus offered for their efforts, reported China Times. A slight decrease from the 3.5 percent raise seen in previous years and as originally requested by the union.
FPG, one of the largest conglomerates in Taiwan at over 33,000 employees, decides on its annual pay increases in July. Currently, the monthly salary of an entry-level employee is about NT$53,352, while the average monthly salary of workers in the firm is NT$61,431.
Due to low oil prices and the sluggish plastics market, the company has seen reduced profits. Therefore, the company opted for a relatively conservative pay raise for this year.
The new pay raise translates to an increase of NT$1,800 more per employee each month. This means an additional NT$59.47 million per month spent on salaries and NT$713 million per year.
Lin Shan-chih (林善志), general manager of FPG, held a salary adjustment meeting with representatives of the group's trade unions. During the meeting, management proposed a raise of 2.75 percent, plus a bonus of NT$3,000, reported China Times.
The company's rationale for the lower pay raise was a 47 percent drop in profits in May and an uncertain outlook with the ongoing U.S.-China trade war. The company then proposed a raise of 3.22 percent, before finally agreeing to the 3.378 percent pay hike, according to the report.