17 more employers introduce work furloughs amid tariff uncertainties

Taipei, May 16 (CNA) Uncertainties created by the Trump administration's tariff policies have forced an additional 17 employers in Taiwan to introduce work furlough programs in the first half of this month, with most in the manufacturing sector, the Ministry of Labor (MOL) said Friday.

Data compiled by the MOL showed that the number of employers with furlough plans rose to 148 as of May 15, up 17 from April 30. The affected 17 firms included 16 employers in the export-oriented manufacturing sector.

Of the 148 firms with furlough programs, a total of 98 are in the manufacturing sector, the data indicated.

Over the past 15 days, the number of workers placed on formal furlough or unpaid leave programs rose from 2,266 to 2,664, the MOL said, adding that the manufacturing sector accounted for about 85 percent of the total.

However, the number of furloughed workers over the past 15 days was still about 2,200 lower than the same period of last year, according to the MOL.

Speaking with CNA, Hou Sung-yen (侯松延), a specialist in the MOL's Labor Conditions and Equal Employment Division, said firms from the metal/electric machinery industry, the information/electronics industry, and the light industry saw their orders cut.

A small-sized machinery maker placed more than 60 workers on furlough in the past 15 days; a metal products supplier put over 50 workers on unpaid leave; and an optoelectronics manufacturer furloughed more than 20 workers, the MOL said.

In addition, more than 60 workers from a textile maker were also placed on unpaid leave during the same period, the MOL added.

The ministry has asked local governments to develop a better understanding of the needs of affected manufacturers, and indicated together with the local governments it will provide all necessary assistance, Hou said.

The MOL data also showed employment in the service sector remained stable with the number of workers on furlough programs in the retail and wholesale industry rising from 272 to 308 in the 15-day period, while the number of workers on unpaid leave remained unchanged at 30.

Over the past 15 days, no employers in the transportation and warehousing industry reported furlough plans, according to the data.

Currently, the MOL updates its furloughed worker data on the 1st and 16th of each month and reports the number of employees placed on unpaid leave by companies registered with the ministry.

Most enterprises implementing furlough programs are small firms that employ fewer than 50 people, according to the ministry.

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