One of the consequences of rapid economic development in Asia-Pacific's industrialized nations is a shortage of unskilled and skilled workers. Ensuring that the rights of the former are protected and devising ways to attract the latter are key issues confronting governments throughout the region.
As a newly industrialized economy, Taiwan has achieved one of the highest per capita incomes in the region and, despite a labor force--which has more than doubled since 1970--the nation has to rely on overseas workers who are attracted to its less skilled employment opportunities.
Labor immigration to Taiwan began wholesale in 1992 following the adoption of the Employment Service Act, which permitted the hiring of migrants--mainly from Southeast Asian countries--for specific industries, especially construction and the so-called 3D (dirty, difficult, dangerous) jobs. In 2007, the Council of Labor Affairs reported a total of 322,771 foreign workers in Taiwan for the previous year, of whom 29 percent were from Thailand and 28 percent from the Philippines. Taiwan Labor Front estimates for mid-2007 put the number of foreign workers at over 350,000.
Although migrant workers are able to remit substantial sums to their home countries, there have been concerns relating to aspects of their employment conditions. In September 2005, 300 Thai workers on Kaohsiung's subway system rioted to protest ill treatment and poor living conditions. Local news reports attributed the disturbance to management's attempts to ban laborers from consuming alcohol and using cellular phones. The rioters set fire to site offices and cars, breaking windows and throwing rocks and bottles at riot police. As a consequence, a task force was set up under the Presidential Office Human Rights Advisory Commission to review the island's immigration policy.
In mid-2007, the government revealed major changes in its policies on foreign labor. A review undertaken by the CLA and the Government Information Office considered Taiwan's overall economic situation and the rights of migrant workers. But despite this measure, the Migrants Empowerment Network in Taiwan staged a migrant worker rally in Taipei Dec. 9, 2007. This civil demonstration involved marchers from Indonesia, the Philippines, Thailand and Vietnam, and highlighted weaknesses in the Labor Standards Act that makes it possible for migrant workers to be denied such basic labor rights as holidays or overtime payments.
Taiwan is not alone in facing difficulties relating to the employment conditions of foreign workers. International concern over migrants' working conditions have led to the establishment of the International Migrants Alliance which held its founding conference in June in Hong Kong. Nearly 170 delegates representing 118 organizations from 25 countries participated, including Hsia Hsiao-chuan of the Trans-Asia Sisters Association of Taiwan--an advocate group for women's rights in Taiwan.
On July 9, Pan Shih-wei, deputy minister of the CLA, announced that the council had decided to keep its existing foreign labor employment policies for the time being, with remuneration remaining tied to the basic monthly wage. However, it plans to revise laws to increase foreign workers' right to stay in Taiwan from two to three years. Consideration will also be given at the end of the year to increasing the proportion of foreign workers employed in the 3D industries above the existing 20 percent.
Whereas unskilled labor can be easily attracted from the less developed economies in the region, meeting Taiwan's needs for skilled workers in its technologically advanced industries and for professional and executive talent is more challenging.
A shortage of executive talent in the region was described by the International Herald Tribune in May 2007 as having driven up salaries for peak performers in Asia's companies to "unheard-of levels." The Executive Yuan's approval a month later of various financial incentives for foreign professionals working in Taiwan represented a move toward helping meet this shortage.
In May 2006, the U.K.'s Science and Development Network pointed out that Taiwan has enticed former emigres to return home and fill key roles in the advanced research and development sector, such as the Hsinchu Science Park. The existence of such opportunities, along with offering salaries comparable to those said elsewhere in the region appear to be a condition for ensuring the continued return of Taiwanese professionals who had moved overseas.
Nevertheless, despite the numbers of returnees and foreign professionals attracted to Taiwan's advanced industries, the island continues to face skilled worker shortages. And this is expected to increase as Taiwan has two other major science parks--the Central Taiwan Science Park and the Southern Taiwan Science Park--with others under development.
As a leading East Asian industrial economy, Taiwan must ensure its long-term success by ensuring that working conditions for migrant laborers meet acceptable standards and that the process of attracting top-flight talent continues. There are encouraging signs that government policies are moving in the right direction on both these issues.
--Philip Courtenay is a free-lance writer based in Queensland, Australia.
These views are the author's and not necessarily those of the TJ.
Copyright 2008 by Philip Courtenay
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