Formosa Plastics Group agrees to raise wages by 4.5%

Taipei, July 25 (CNA) Formosa Plastics Group (FPG), one of the largest conglomerates in Taiwan, said Monday that it will increase its employees' pay by 4.5 percent, retroactive to July 1, in keeping with a proposal put forward by its workers' union.

Based on FPG's average regular wage of NT$55,467 (US$1,855) per month, the 4.5 percent increase will give its workers a monthly pay raise of NT$2,496 on average, the biggest hike in 38 years, according the group.

The decision was made after FPG Chairman Wong Wen-yuan (王文淵) agreed in a meeting with union representatives Monday to meet their request for a 4.5 percent wage hike, the group said.

After the meeting, Chen Hung-ju (陳鴻儒), head of the FPG workers' union, told reporters that it was conducted in a harmonious atmosphere and it went smoothly.

Wong was pleased with FPG's 2021 earnings, even though he was cautious about the market outlook for the second half of this year, and he agreed to the union's proposal of a 4.5 percent pay raise, which will be made retroactive to July 1, according to Chen.

Wong said FPG and its employees will work hard to strengthen its bottom line, despite the uncertainties overshadowing the domestic economy, Chen told reporters.

Last year, FPG raised wages by 3.83 percent and gave all of its employees a one-time bonus of NT$10,000 as an incentive.

Wu Chi-chung (吳祈忠), head of Nan Ya Plastics Corp.'s union, said that while no one-time bonus was offered this year, the FPG unions are happy with the 4.5 percent increase of the regular pay.

As one of Taiwan's biggest companies, FPG is usually closely watched in the private sector, which often sees the group's wage negotiations and adjustments as a benchmark.

In 2021, FPG's four major entities -- Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp. and Formosa Petrochemical Corp. -- posted a combined net profit of over NT$240 billion, up 230 percent from a year earlier.

For the first half of 2022, the four companies reported NT$110 billion in combined net profit, at a time when the outlook for the domestic economy has been darkened by global factors.

Several think tanks have lowered their forecasts for Taiwan's 2022 economic growth, citing weakening private consumption amid rising inflation worldwide.