Giant labor case shows stronger worker protections needed: Scholars

Taipei, Oct. 12 (CNA) Taiwanese scholars have said that Taiwan must strengthen protections for lower-wage migrant workers as it seeks recognition as a developed country, following a U.S. order suspending imports from Taiwan-based Giant Manufacturing Co. over alleged forced labor.

Chen Li-yi (陳立儀), an assistant professor at the Department of Labor and Human Resources at Chinese Culture University in Taipei, told CNA in a recent interview that if Taiwan considers itself a developed country, "it must ensure the protection of migrant workers' human rights."

Chen said the U.S. Customs and Border Protection issued a withhold release order (WRO) in September against Giant to prompt Taiwan's leading bicycle manufacturer to set an example by providing better working conditions for migrant laborers.

He said Taiwan's system for managing migrant workers still functions as a government-to-government arrangement between Taiwan and Asian countries, unlike in advanced economies where employment is based on private agreements between enterprises and workers.

Chen said that Taiwan Semiconductor Manufacturing Co.'s (TSMC) experience establishing production sites in the United States shows how cultural differences influence labor conditions.

"Many Taiwanese workers think paying overtime to speed up progress is reasonable, but American workers believe holidays should be for rest," he said.

Lin Chun-yu (林君諭), an assistant professor at the Department of Social Work at Soochow University in Taipei, told CNA that foreign workers employed in industrial production in Taiwan already enjoy relatively better protections than caregivers and fishery workers.

She said Taiwan's attitude toward migrant-worker rights "has really improved" but still leaves "room for progress," adding that some workers must pay high brokerage fees in their home countries under the current quota system.

In response to the U.S. action, Giant said it "absolutely has no debt-bonded labor" and "has never abused the disadvantaged status of migrant workers."

The company said wages are paid within five days after each pay period, with bilingual payslips and legally calculated overtime pay, and that its working environment meets ISO 45001 and Taiwan Occupational Safety and Health Management System (TOSHMS) standards.

Giant said its dormitories exceed legal space requirements and are equipped with air conditioning and bilingual management staff, adding that it has hired lawyers and will meet U.S. representatives "to explain the actual situation."

Speaking of the Giant case, Economics Minister Kung Ming-hsin (龔明鑫) said last week that Taiwan "has continuously improved the care of foreign migrant workers" and that the ministry will work with the Ministry of Labor to set out clear guidelines for improving living and working conditions.

According to Giant, the company implemented a "zero recruitment fee policy" in January 2025, under which it covers all recruitment, brokerage and government fees for newly hired foreign workers.

Meanwhile, Merida Industry Co., Taiwan's second largest bicycle manufacturer, said it would adopt a "zero fee policy" on Oct. 1, 2025, ending all recruitment and service fees for both new and current migrant workers.

The company also said it plans to reimburse workers for previous recruitment costs by Oct. 25, 2025.