Manufacturing sector puts more workers on furlough due to low demand

Dec. 25 (CNA) The number of workers in Taiwan on furlough programs has increased, largely due to the local exports-oriented manufacturing sector experiencing declining demand which prompted firms to take advantage of unpaid leave programs, the Ministry of Labor (MOL) said Monday.

Data compiled by the MOL showed the number of furloughed workers in the manufacturing sector rose to 8,924 as of Dec. 23, up from 8,609 on Dec. 15, while the number of employers in the manufacturing sector that implemented furlough programs rose to 218 from 208.

As a result, the overall number of furloughed workers in Taiwan rose to 9,935 as of Dec. 23, up 359 from 9,576 as of Dec. 15, with the number of companies implementing furlough programs rising by 14 to 382, the data showed.

Li Yi-hsuan (李怡萱), a specialist with the MOL's Labor Conditions and Equal Employment Division, told CNA that a semiconductor component supplier in the Hsinchu Science Park, which employs more than 600 people, had put about 50 workers on furlough.

Li said the MOL and the Hsinchu Science Park Bureau will continue to keep a close eye on the situation at a time of global demand weakness.

In addition, a sports equipment maker in the light industry segment also reported that 170 workers had been placed on unpaid leave, but that the furlough program would last only one month, following short-term order changes, Li said.

In the metal and electric machine segment, a machinery maker implemented furlough, putting about 60 workers on unpaid leave, and a rubber and plastics maker in the chemical segment also put about 50 workers on furlough, Li said.

On the other hand, a bicycle component maker received large rush orders and decided to end its furlough programs ahead of schedule, meaning about 60 people returned to work, Li said.

The service sector remained resilient following solid domestic spending in the post-COVID-19 era, Li said.

The number of furloughed workers in the transportation and warehousing industry, and the lodging and food/beverage industry remained unchanged, at two each, as of Dec. 23, while the number fell to 41 from 58 a week earlier in the support service industry, which comprises travel agencies, MOL data showed.

In addition, the number of workers on unpaid leave in the retail and wholesale industry increased to 860 as of Dec. 23, up from 801 the previous week, the data showed.

The MOL usually updates its furloughed worker data on the 1st, 8th, 16th, and 24th of every month and reports the number of employees placed on furlough by companies registered with the ministry.

Most of the enterprises implementing furlough programs are small firms that employ fewer than 50 people.

Unpaid leave programs typically last for less than three months, with employees taking five to eight days of unpaid leave per month, according to the MOL.