Business groups call for help after law on increased holidays passes

Taipei, May 9 (CNA) Several business groups on Friday called on the government to come up with measures that will help offset the impact of four new national holidays in Taiwan on their operations, after a law instituting the new holidays was passed.

In a statement, the Taipei-based Chinese National Association of Industry and Commerce (CNAIC) said it understood the public's right to a work-life balance, but the increased number of holidays could pose challenges for domestic industries.

This was especially true for the manufacturing and service sectors, as well as numerous small-to-medium-sized businesses that rely on employees working in shifts and are under constant pressure to fill orders, the CNAIC said.

The additional holidays, it said, could increase the operating costs of their businesses as they would need to pay higher overtime wages or adjust workforce duties, hurting their cost structures.

This is especially concerning amid global economic uncertainty as the additional financial burden could undermine these companies' competitiveness, the association said.

The CNAIC therefore called on government agencies to provide necessary supporting measures to help businesses adapt to the changes, including offering tax incentives or subsidy programs to offset rising labor costs, and enhancing support for industrial transformation.

Lin Por-fong (林伯豐), the chairman of the Third Wednesday Association, an organization formed by Taiwanese business owners and leaders, echoed the CNAIC's views, saying the "operating costs for businesses will inevitably increase" due to the additional holidays.

With the "reciprocal tariffs" imposed by the United States, the appreciation of the New Taiwan dollar, and weak global consumer demand, domestic businesses could face significant losses this year, Lin cautioned.

He urged the government to provide measures to reduce the burden on local businesses, including lowering the duties on goods imported into Taiwan, in particular tariffs on raw materials.

In contrast to those business groups, tourism operators on Friday lauded the additional holidays, expecting that it could boost domestic and international travel demand, which would help grow the overall market and generate positive effects for the tourism industry.

Benjamin Pien (卞傑民), general manager of Phoenix Tours Int'l, Inc., said more holidays will only mean good things for the tourism industry.

If holidays are short and spread out, they tend to boost domestic tourism, while longer holidays -- especially those lasting at least four or five days -- are more likely to drive a surge in outbound travel, Pien said.

News of the additional holidays, meanwhile, was also welcomed by Lion Travel and hotel operator FDC International Hotels Corp.

Kuomintang (KMT) lawmaker Niu Hsu-ting (牛煦庭) also praised the law's passage on Friday, thanking everyone involved for making it happen, including independent lawmaker Kao Chin Su-mei (高金素梅) and Taiwan People's Party Legislator Mai Yu-chen (麥玉珍).

Premier Cho Jung-tai (卓榮泰) said he found the adjustment to Taiwan's national holidays "regrettable" and questioned whether industrial players were consulted in the crafting of the bill.

Yet, he also said he was not opposed to increasing the number of holidays, saying, for example, that Labor Day was worth discussing because currently half the population has the day off while the other half does not.

Separately, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) said it respected the new law, noting that the increased number of holidays will not pose an impact on its operations.