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TITLE: Taiwanese Government Finds Nien Hsing's Labor Practices Unacceptable

AUTHOR:

ORG: Taiwan Solidarity with Nicaraguan Workers

DATE: January 4, 2001

Report on Taiwan Legislative Yuan Hearing on the Chentex Case

On January 2, 2001, the second day of the new century, the Legislative Yuan (parliament of Taiwan) held a hearing on the labor dispute at Chentex, a subsidiary of Taiwan's Nien-Hsing Textile. The hearing was presided by Legislator Lee Cheng-Tsong. Nien-Hsing was represented by its vice president and spokesperson. Representatives on the labor side included representatives from the two largest union federations (China Federation of Labor (CFL) and Taiwan Confederation of Trade Unions (TCTU)), Committee for Action on Labor Legislation, Labor Rights Association, and Taiwan Solidarity for Nicaraguan Workers. Officials from the Ministry of Foreign Affairs (MOFA), Council for Labor Affairs (CLA), and the Labor Insurance Fund (which owns about 5% shares of Nien-Hsing) also attended the hearing.

Representatives of TSNW started by recounting the facts of labor rights violation at Chentex, the grave consequences of this one company's conduct on the international reputation of Taiwan, and the fact that the company¡¯s representatives in Nicaragua repeatedly sabotage the negotiations. The spokesperson of Nien-Hsing repeated their old excuses: that the unionists are politically motivated rioters, that the international solidarity is actually self interested projectionist conspiracy of the US, and that the company is the real victim in this affair.

A MOFA official confirmed what Taiwan's Representative in US, Cheng Jian-Ren, stated in his December 19 statement, namely that the government of Taiwan suggested Nien-Hsing to reinstate the 12 fired union leaders. CLA director of the Labor Dispute division reported that the Nien-Hsing facility in Miaoli County, Taiwan, employs more than 700 employees, but has no union. This is unlawful since Taiwan's union law requires every workplace with workforce over 30 to be unionized. He also confirmed that the CLA recommended Nein-Hsing to hire the 12 union leaders back.

CFL deputy secretary questioned Nien-Hsing's good faith in solving this dispute on the ground that the company sent out very hostile lawyer's letter to everyone involved in our solidarity campaign. An executive board member of TCTU, who is also a trustee of the Labor Insurance Fund, demanded that the fund sells all Nien-Hsing shares, should the company fail to improve its conduct in Nicaragua, because Taiwanese workers refuse to bankroll a violator of basic labor rights with our own money. Subsequently, members of TSNW debunked Nien-Hsing's arguments about the political trappings of Nicaraguan unionists and the protectionism of US solidarity activists. They cite the complaint submitted by ITGLWF general secretary Neil Kearney to prove that this is a genuine issue of suppression of the rights of association of workers, and a violation of international conventions.

The fact that the company refuses to negotiate in good faith even after the Taiwanese government made its position clear shows the company's contempt. The TSNW demand that the government use every means at its disposal to Nien-Hsing to correct its unseemly conducts. After heated debate, the chairperson of the panel arrived in four conclusions:

1. The absence of a union at Nien-Hsing's Taiwan factory should be addressed by the CLA with utmost urgency.

2. The Labor Insurance Fund should seriously consider Nien-Hsing's overseas labor conduct in its future investment decisions.

3. The MOFA should closely monitor the labor dispute at Chentex, and stop all subsidies to the company should the violation of labor rights ensue.

4. Nien-Hsing Textile should withdraw all lawsuits against Nicaraguan unionists and their supporters in Taiwan to show its good faith.

Although these recommendations are non binding, they certainly brought pressure upon Nien-Hsing. Moreover, the fact that almost all government officials showed their sympathy with the labor's side is a great improvement in the strength of the solidarity campaign. Nien-Hsing's spokesman said that the company will reopen negotiations with the CST union on January 3. We will be watching the progress of the negotiation closely and plan for further actions if the negotiation breaks down again.

Forwarded by:

National Labor Committee 275 7th Avenue, 15th Floor New York, NY 10001 Tel: 212/242-3002 Fax: 212/242-3821 Email: nlc@nlcnet.org

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