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Formosa Plastics to give year-end bonus of 5.83 months' salary

2019/01/16 21:22:45

Taipei, Jan. 16 (CNA) The Formosa Plastics Group (FPG), one of the leading conglomerates in Taiwan, will hand out year-end bonuses of 5.83 months' salary to its employees, one of its labor unions said Tuesday.

In addition, each worker will receive a gift of NT$15,000 (US$487) ahead of the Lunar New Year holiday, which starts Feb. 2, the union said.

Wu Chi-chung (吳祈忠), head of the worker's union of Nan Ya Plastics Corp., said the year-end bonus was decided in an agreement between FPG President Wang Wen-yuan (王文淵) and the workers' unions of the FPG subsidiaries after more than one hour of discussions on Tuesday.

The year-end bonus plus the cash gift will amount to almost six months' salary for most employees, he said.

However, the amount is smaller than last year's bonus, which was equivalent to six months' pay, while the cash gift was NT$22,000 per worker, in reflection of FPG subsidiaries' record-high net profits in 2017.

The bonus was reduced this year because of the lower bottom lines of the four subsidiaries in 2018, as international crude oil prices had dropped, pushing down petrochemical product prices, according to FPG executives.

Apart from Nan Ya Plastics, FPG's other major subsidiaries are Formosa Plastics Corp., Formosa Chemicals & Fibre Corp., and Formosa Petrochemical Corp.

In 2018, the combined net profit of the four FPG subsidiaries was NT$210.94 billion, an 11.5 percent decrease from the previous year.

According to analysts, the drop in profits resulted largely from the companies' smaller bottom lines in the fourth quarter of 2018 as international crude oil prices dropped below US$50 per barrel at one point, from a high of US$86 a year earlier.

Among the four companies, Formosa Plastics was the only one to report an annual increase in net profit in 2018 -- a rise of 0.2 percent to NT$49.5 billion. Nan Ya Plastics and Formosa Chemicals & Fiber reported declines of 3.3 percent and 10.6 percent, respectively to NT$52.74 billion and NT$48.64 billion.

Formosa Petrochemical's 2018 net profit fell 25.1 percent from a year earlier to NT$60.06 billion.

(By Wei Shu and Frances Huang)