Bridgestone Taiwan to lay off over 500 workers at Hsinchu plant

Taipei, May 11 (CNA) More than 500 workers are expected to be laid off in July after Bridgestone Taiwan Co. shuts down production at its Hsinchu plant as part of a restructuring plan, the Hsinchu County government said Monday.

Speaking to reporters, Hsinchu County Magistrate Yang Wen-ke (楊文科) said the company handled the layoffs in accordance with the law and that the company's labor union also agreed to Bridgestone's move.

The county government would continue to monitor the situation and provide any necessary assistance, Yang said.

Lu Chao-yun (呂昭昀), head of the labor relations section at the county's Labor Affairs Department, told CNA that employers planning mass layoffs are required by law to give 60 days' notice and that the company submitted the relevant documents last week.

The layoffs are scheduled to take effect on July 10 and will affect the more than 500 Taiwanese and foreign employees involved in manufacturing at the plant, Lu said, adding that Bridgestone Taiwan had already informed union representatives of its severance plan.

For employees, news that they were being laid off came as a surprise, and Lu said consultations between management and affected employees were being held to discuss the terms of the layoff plan.

In a statement posted on its website earlier in the day, the Japanese multinational tire and rubber manufacturer announced a business restructuring in Taiwan in response to global operational strategy adjustments and long-term market demand.

The company said its Hsinchu plant is halting production and ending all related manufacturing operations effective Monday, while continuing to focus on the Taiwan market through a business model centered on sales and services.