Furloughed worker growth moderates as manufacturers' orders recover

Taipei, Oct. 16 (CNA) Growth in the number of workers on unpaid leave in Taiwan slowed significantly in the first half of October, as some export-focused manufacturers' orders rebounded despite the effects of U.S. tariffs, the Ministry of Labor said Thursday.

Data compiled by the MOL showed the number of workers placed on formal furlough programs rose slightly by 38 from the end of September to 8,543 as of Oct. 15, compared with an increase of 1,171 seen during the second half of September.

The number of employers with formal furlough programs in place rose to 432 from 398 during the 15-day period.

Huang Chi-ya (黃琦雅), head of the MOL's Department of Labor Standards and Equal Employment, told reporters that 53 firms in the manufacturing sector terminated their unpaid leave programs after receiving more orders.

Still, the manufacturing sector reported 8,130 furloughed workers, accounting for 95.2 percent of the total furloughed workers.

Huang said while the job market showed signs of stabilizing, many employers told the MOL that they needed more time to observe how the under-negotiation U.S. tariff policies proceed.

Among the 432 employers with unpaid leave programs in place, 354 were affected by the U.S. tariffs that placed a 20 percent levy on Taiwanese exports and put 7,923 workers on furlough.

In particular, the machinery industry reported the most furloughed workers of 3,448 in the manufacturing sector, Huang said, adding these affected laborers were eligible to apply for subsidies from the government.

Under the current measures to stabilize the job market in reaction to the U.S. tariffs, the MOL will provide subsidies to furloughed workers in the food, steel, textile, plastics, metal and electric machinery and auto/auto parts industries, among others.

The subsidies total 70 percent of the reduced wages due to furlough, or enough to bring a workers' monthly pay above the minimum wage of NT$28,590 (US$934).

According to Huang, 7,156 affected workers were covered by the measures.

Furloughed workers outside of these designated industries are eligible to participate in training programs arranged by the MOL to receive NT$190 in subsidy per hour and monthly maximum is NT$17,210. These workers are also protected by the minimum wage requirement.

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 MOL.

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.