TAIPEI (Taiwan News) — The Ministry of Labor on Monday announced that most new cases of reduced work hours are linked to US tariffs imposed on Taiwan.
The MOL said 245 companies reduced working hours for 4,863 employees in response to economic conditions, per CNA. This compares with 191 companies and 3,934 workers reported on Aug. 18, marking an increase of 54 companies and 929 workers.
Huang Chi-ya (黃琦雅), director of the MOL’s Department of Standards and Equal Employment, said manufacturing accounted for the bulk of cases this period, with 191 companies and 4,479 workers — an increase of 45 companies and 889 workers from the previous report. Within manufacturing, the machinery and metalworking industries made up the largest share, with 156 companies and 3,685 workers.
Within that sector, machinery and equipment manufacturing accounted for the highest share, at 92 companies and 2,445 workers. The two largest cases this period were both machinery and equipment makers, each reporting more than 100 workers on reduced hours. One was a drilling machine manufacturer primarily exporting to North America, affecting 110 workers, while the other was a machine tool manufacturer serving both domestic and overseas markets, affecting 103 workers. The latter cited falling orders as the cause.
Based on company reports, 118 firms involving 3,055 workers implemented reduced hours due to US tariffs this period, up 45 companies and 667 workers from the previous report. That means 62.8% of all firms on reduced hours cited US tariffs.
Huang added that 168 companies and 3,812 workers are currently eligible for employment stabilization measures. The MOL will continue monitoring, proactively visit companies and unions, and adjust the scope of stabilization measures as needed to support employment.
The MOL emphasized that reduced hours do not equate to unpaid leave. For full-time workers paid monthly, wages may not fall below the statutory minimum wage. Employers must continue providing labor and health insurance and making labor pension contributions during the period of reduced hours.
