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Performance bonuses for state firm workers to be slashed: MOEA

Performance bonuses for state firm workers to be slashed: MOEA

Taipei, Dec. 29 (CNA) Workers at state-run companies will receive no more than the equivalent of one month's salary as annual performance pay starting 2009, on a trial basis, Minister of Economic Affairs (MOEA) Yiin Chii-ming said Monday.
This means that annual performance bonuses for state-run company employees will be adjusted downward beginning next year, with the revised calculation formula to be based on the type of company and its performance, Yiin confirmed in response to questions from reporters before a meeting of a tax reform committee under the Executive Yuan.
However, while the annual performance pay will be limited to one month's wages, such employees will still be entitled to a work bonus of two months' salary, he added.
Handsome year-end bonuses to workers at state-run enterprises has become an issue this year at a time when many factories have shut down and their workers laid off amid a sharp economic downturn.
Lawmakers from the ruling and opposition parties have criticized state-run companies, particularly those operating at a loss, for continuing to pay big bonuses this year.
Taiwan Power Company, the oil refiner CPC Corp., Taiwan, and the aircraft manufacturer Aerospace Industrial Development Corp., (AIDC) were among those cited by the lawmakers as examples.
CPC Corp., Taiwan is showing a deficit of nearly NT$100 billion (US$3.03 billion) this year, while the Taichung-based AIDC has posted losses of NT$10.8 billion for the past eight years.
Nonetheless, workers at these state-owned enterprises have been known to receive average year-end bonuses equivalent to four months' pay.
Lawmakers have called for an amendment to the relevant laws to stop what they referred to as an unfair practice and to introduce closer scrutiny of the budget allocations for state enterprises.
(By Flor Wang)




Updated : 2021-02-26 01:14 GMT+08:00