Tariff bailout fund to focus on employment: Labor Minister

Taipei, April 9 (CNA) Labor Minister Hung Sun-han (洪申翰) said Wednesday that the Ministry of Labor's (MOL) subsidies for businesses impacted by a 32 percent tariff announced by U.S. President Donald Trump will focus on efforts to reduce unemployment and the number of people put on unpaid leave.

The MOL has laid out a "worker support policy" focusing on how to prevent employees from being laid off by businesses affected by the tariffs and a contraction of the job market, precluding unemployed people from returning to the workforce, Hung told reporters at the legislature before going into a meeting.

The MOL has earmarked NT$15 billion (US$455 million) for this, Hung added.

The MOL has contacted unions and trade associations that might suffer a significant impact from the tariffs and learned employment situation at companies and within the industry so that it could quickly devise response measures to mitigate the impact.

Hung's remarks came after Taiwan Workers' United, a coalition of workers' unions, issued a statement on Sunday that called on any government measures to help businesses in the wake of the U.S. tariffs to prioritize prevention of layoffs and degradation of working conditions.

Hung later faced questions from lawmakers regarding which industries could bear the brunt of the tariffs.

The sectors more susceptible to the negative impact of the tariffs are mostly export-oriented, including manufacturers of machinery, autoparts, plastics, petrochemicals, plumbing, nuts and bolts, fasteners, and wires and cables, Hung said.

The MOL might increase the fund to help businesses if the United States announces new tariffs and the negative impact spills over to other sectors, Hung added.

Under the MOL's employment stabilization policy in response to the tariffs, people on unpaid leave at companies where furloughed workers have met a certain percentage of all employees are eligible for subsidies to cover the shortfall in their paychecks.

However, for sectors to be eligible for the subsidies, they must first gain the approval of the "employment stabilization initiative advisory committee."

The MOL said it would discuss the matter with relevant agencies and submit motions during a committee meeting that could take place next week at the earliest.