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Trade Unions and Employers Associations in Taiwan
Employment Law Overview Taiwan
Taiwan

Trade Unions and Employers Associations in Taiwan

Brief Description of Employees’ and Employers’ Associations

A trade union (labour union) is an organisation formed by workers to advocate for their labour and employment rights.  Under current regulations, labour unions are broadly categorized into three types: 1) occupational unions, 2) industrial unions, and 3) enterprise unions.

Occupational unions consist of workers from the same occupation or professional field. For instance, teachers, nurses, and engineers may establish their own occupational unions. Typically, there is only one occupational union of the same type within a county or city, and these unions are dedicated to representing employees of specific professions to ensure that the unique needs and rights of different occupations or professional fields are safeguarded.

Industrial unions consist of employees from enterprises within the same industry. For instance, the manufacturing, service, and construction industries may each have corresponding industrial unions. The scope of industrial unions is relatively broad, aiming to represent all employees within a particular industry.

Enterprise unions are formed within a particular enterprise and are established by the employees of that enterprise. These unions focus on managing internal affairs of the enterprise, such as employee welfare, salary negotiations, and working conditions.

Rights and Importance of Trade Unions

The responsibilities of a labour union encompass, but are not limited to, the negotiation, modification, or termination of collective agreements; resolution of labour disputes; enhancement of labour conditions, occupational safety and health, and member welfare; advocacy for the development and amendment of labour policies and laws; and the organisation of labour education, among other activities.

Rights and Importance of Trade Unions

a. Number of Representatives

Pursuant to Article 11 of the Labour Union Act, an enterprise union may be established with the signatures of 30 or more employees. In accordance with Article 17 of the Labour Union Act, unions with 500 or fewer members are required to have 5 to 9 directors, and the number of supervisors must not exceed one-third of the directors.

 

b. Appointment of Representatives

The formation of a labour union, in addition to fulfilling the procedural requirements of Article 11 of the Labour Union Act, must also be registered with the county, city, or central competent authority.

Tasks and Obligations of Representatives

The function of a labour union is to mitigate or eliminate competition among individual workers, unify the workforce, and consolidate the number of workers to exert pressure and enhance bargaining power in negotiations with the employer. Only in this manner can the labour force effectively counter the employer, thereby enabling workers to demand more equitable labour conditions and protection from undue exploitation by the employer.

Employees’ Representation in Management

Concerning the internal members of a labour union, pursuant to Article 14 of the Labour Union Act, in principle, individuals who hold or perform employer duties or functions should not be included, as having a member with both labour and employer status would compromise the homogeneity within the union.

Other Types of Employee Representative Bodies

An employer should establish the following employer-employee organisations:

  • A Labour-management Conference (LMC) is required for matters relating to overtime and flexible work schedule.
  • A Retirement Reserve Fund Committee (RFC) is required for eligible employees under the Old Pension.
  • An Employee Welfare Committee (EWC) and an employee welfare fund are required if an employer has 50 employees or more.
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