According to Chiu, measures under consideration include financial assistance to help companies meet their payrolls, low-interest loans, and subsidies of employers' contributions to their workers' labor and health insurance premiums. Representatives from various agencies, such as the Cabinet-level Council of Labor Affairs and Financial Supervisory Commission, Ministry of Economic Affairs, and the Council for Economic Planning and Development were in attendance.
Government Information Office Minister and Cabinet Spokesperson Su Jun-pin stated that the government would seek to reward companies that demonstrate compassion and refrain from laying off employees as a cost-cutting measure during these tough times. "We hope the incentives will encourage more businesses to make a no-layoff pledge," he said.
Su explained that the group is working toward formulating a series of substantive measures aimed at helping private companies reduce costs through means other than culling their workforces. "All companies will be eligible for the incentives as long as they are sincere in solving their problems in concert with the government," he said.
One key incentive being discussed would see companies that cut less than 1 percent of their workforce from Jan. 1 to Dec. 31 issued with "caring enterprise" certificates by the MOEA. Certified small and medium-sized businesses could then access low-interest loans from a budgeted NT$300 billion (US$9 billion) and enjoy a higher loan-to-value ratio than those without a certificate. Certified large businesses would be exempt from restrictions that forbid them from taking out new loans from a NT$600 billion fund to repay existing debts. Chiu said several government-controlled banks are being considered as backers of the loan program.
As for the mooted subsidization of employers' contributions to their workers' labor and health insurance premiums, CLA Minister Wang Ju-hsuan said the matter was still under discussion. The council is yet to determine whether this measure would be useful in helping financially troubled companies, as labor insurance premiums tend to account for a negligent ratio of their debts. According to Taiwan's current labor insurance system, the employer is responsible for 70 percent of the worker's labor insurance fees, while the employee pays 20 percent and the government 10 percent.
Wang stated that in addition to the subsidy proposal, the council was considering a range of additional measures in its drive to keep a lid on unemployment. These included a recently completed draft policy aimed at increasing job openings in the public sector, and environment-related and caregiving industries.
The vice premier stressed that the new supplementary measures are in accordance with the Cabinet's "three back-ups policy"--government backs up banks, banks back up enterprises and enterprises back up employees.
Chiu explained that this policy has been the overarching principle behind the Cabinet's response to challenges thrown up by the global economic crisis.
The proposals tabled as part of the Cabinet's "caring enterprise" initiative have received a warm welcome in some quarters. Analysts believe they show a considerable degree of seriousness and intent to stem the flow of short-term unemployment.
Data provided by the Cabinet-level Directorate-General of Budget, Accounting and Statistics for November last year confirmed Taiwan's unemployment rate hit a four-year high of 4.64 percent, with the number of jobless exceeding half a million people. This represents close to a 20-percent increase on November 2007's rate of 3.87 percent.
Write Eric Chao at clchao@mail.gio.gov.tw