Labor groups allege contract swaps, low pay for Indonesian workers

Taipei, Oct. 15 (CNA) Labor groups on Thursday accused a Taiwanese offshore wind equipment manufacturer of exploiting Indonesian technical workers whose monthly salary contracts were allegedly replaced with lower-paying hourly agreements, and urged a review of the system used to bring them to Taiwan.

At a protest outside the Ministry of Labor (MOL) in Taipei, groups including the Taiwan International Workers' Association (TIWA) said five workers, representing a larger group, had complained about pay and working conditions on offshore wind projects involving Century Energy Co., Ltd., a major Taiwanese manufacturer of offshore wind subsea foundations.

TIWA coordinator Betty Chen (陳容柔) said the workers -- qualified welders and fitters -- were brought to Taiwan by Singapore-based Sheffield Green and Indonesia's PT Kepodang Makmur Sejahtera under a "contract performance" system that allows overseas companies to send personnel to work on contracted projects.

Some had initially signed contracts promising NT$48,000 (US$1,482) a month but were later paid about NT$100 to NT$143 per hour, Chen said.

Century Energy's response

In a statement issued later Thursday, Century Energy said the foreign technical workers had been brought to Taiwan under arrangements approved by Taiwanese authorities, and denied evading any legal responsibilities.

It also disputed the allegations about the workers' wages, saying they "did not match the facts," but did not provide further details or wage figures.

The company said employment terms were governed by agreements between the workers and overseas contractors, making it "inappropriate" for it to intervene directly. However, it pledged to continue monitoring the workers' welfare and to cooperate with government inspections.

Workers' accounts

Eko, a pseudonym for an Indonesian fitter who said he had worked on the projects for five years, said he earned about NT$100 an hour despite holding professional qualifications. He also trained Filipino and Vietnamese blue-collar migrant workers who, he said, lacked comparable technical qualifications.

"Why am I paid less than blue-collar migrant workers?" he asked, adding that he worked about 260 hours a month and had no labor or occupational accident insurance.

Another Indonesian worker, speaking under the pseudonym Yat, said he signed an agreement promising NT$48,000 a month but was given a lower-paying hourly contract just days before leaving Indonesia.

Chen said workers had raised concerns with the company but were told, "If you don't want to work, go home."

Pay and minimum wage

Taiwan's minimum wage is currently NT$29,500 per month, or NT$196 per hour, for covered workers. Based on an illustrative calculation of 26 workdays a month plus 14 hours of overtime, Chen estimated that a worker earning NT$100 an hour would receive NT$28,362 a month, including bonuses and overtime pay.

Citing Century Energy's 2025 sustainability report, the groups said the company had 508 contract performance personnel that year, assigned to facilities in New Taipei's Bali District and Taichung.

They estimated that the company could save more than NT$14 million a month in wages and employment-related contributions if similar arrangements applied to approximately 500 workers.

Groups' demands

The protesters called for investigations into suspected disguised employment, reviews of workers' contracts, compensation for the workers, continued employment under terms applicable to foreign technical workers and a system to help and shelter workers seeking redress.

Ministry of Labor response

The MOL replied in general terms, saying foreign workers dispatched to Taiwan under commercial contracts must receive the protections for employment terms and occupational injury compensation provided under applicable Taiwanese laws, such as the Labor Standards Act where it applies.

The ministry said it would step up inspections of high-risk cases and "deal strictly under the law" with companies found using contract performance arrangements to "circumvent employment and labor regulations."