Employee Care and Welfare

Employee regulatory framework

ChunYu firmly believes that "people" are the most important core of a company's success. We value the work benefits of every employee and believe that a comprehensive compensation and benefits system will not only retain outstanding employees but also attract exceptional talent. The following will reveal the relevant systems established by our company based on the above philosophy, including: personnel compensation system, performance evaluation system, and employee benefits system.

Labor-Management Relationship

Employees are a vital asset to the company, and the corporate image, product quality, workplace culture, and vision are all closely linked to employee competence. Creating a friendly and safe work environment is an essential factor in enhancing employee engagement and well-being. Only by allowing employees to genuinely embrace this sense of mission can the company achieve sustainable positive growth.

Policies and Strategies

1.Employee Welfare Policy: The Employee Welfare Committee and the labor union provide various welfare measures for employees.
2.Compensation Policy: Establish a competitive salary system that offers transparent performance evaluations and promotion processes to attract and retain outstanding talent.
3.Labor-Management Communication Policy: Hold regular labor-management meetings to listen to employees' opinions and concerns, addressing issues raised by employees promptly to promote harmonious labor relations.

Goals and Objectives

Short-Term Goals:
1.Plan various welfare systems and annual welfare activities.
2.Ensure fairness in the design and implementation of the compensation system.
Medium and Long-Term Goals:
1.Provide effective channels for labor-management communication to maintain a good labor-employer relationship.
2.Offer a comprehensive training system and career development plans for employees.
3.Promote the establishment of a knowledge base to foster a knowledge-learning environment within the company.

Management Evaluation Mechanism

Annual employee satisfaction surveys and regular meetings of the Welfare Committee are held for review.

Employee Health Check

ChunYu cares about the physical health of all employees and integrates environmental monitoring data to identify potential health hazards associated with specific statutory operations. In addition to arranging health checks for special operations that include noise, hexane, and ionizing radiation, the company monitors employee health status and provides a basis for self-health management. Necessary safety and health training is also offered. On a proactive front, numerous measures and activities are provided to promote employee health.
Currently, there are two main categories of measures in place: the first category is the provision of professional medical services, and the second category is health promotion activities. Details are outlined as follows:

(一)Professional Medical Services

1.A physician provides on-site services once a month for three hours each visit.
2.Based on the employee health check reports, risks are assessed, and proactive care is provided. If necessary, on-site services are arranged, allowing physicians to meet with employees to offer health guidance and care.
3.Nursing staff will follow up on the implementation results after providing health education to employees, as directed by the physician.
4.The water dispensers are monitored for TDS (Total Dissolved Solids) and E. coli levels, and filter replacements are provided monthly. Additionally, vendors are scheduled for regular replacement of post-filters.
5.Health check care that exceeds legal requirements is offered, allowing employees to choose appropriate screening packages based on factors such as age and health risk factors.

(二) Health Promotion Activities

1.Health information and promotion are announced weekly.
2.Employee clubs and activities include badminton, dance, hiking, baking, and floral arrangement.

Protection of Female and Maternal Workers

1.The company has established a "Maternal Health Protection Procedure for Female Workers," which provides a "Maternal Health Hazard Assessment and Job Suitability Arrangement Form" for the individual being assessed to complete. This form is then submitted to healthcare professionals for evaluation and appropriate job placement.

Abnormal Working Hours and Ergonomic Protection

1.The company has established a "Workload-Related Illness Prevention Procedure" and a "Musculoskeletal Disorder Prevention Procedure." These procedures involve conducting risk assessments and needs surveys using specific scales to appropriately address the needs of workers identified as being at risk.

一、Employee Statistics

Employee Worker Statistics

The composition of a company's employees reflects its talent management status and provides insights into whether it is fulfilling its social responsibilities. ChunYu's employees are all full-time. Due to the nature of the work, the majority of employees are male, but there are also female employees.
Base the gender structure, ChunYu places even greater emphasis on the social responsibility of gender equality, providing both male and female employees with legally mandated parental leave. Prospering together with employees is an unwavering value belief that ChunYu has held firm to in its development.

Region 

Contract 

Female 

Male

Total

Taiwan 

Number of Full-Time Employees

135

452

587

Statistics of Non-Employee Workers

ChunYu Factory's statistics on non-employee workers indicate that the most common type is non-regular contract contractors, such as those involved in machinery maintenance, equipment replacement, and upkeep, totaling 31,510 individuals. Additionally, a smaller number are on regular contracts for roles such as security, cleaning, and waste recycling, amounting to 720 individuals. In 2022, ChunYu Factory had a total of 32,230 individuals. Due to the impact of the pandemic in 2020, the factory implemented health control measures, leading to significant fluctuations in the number of non-employee workers in 2021.
Security
Contract
5
Cleaning Staff
Contract
3
Waste Management Staff
Contract
6
Consultants
Mandate
2

二、Acceptance of Diverse Ethnic Groups

ChunYu's hiring standards do not consider race, nationality, or skin color; instead, they are based on the principles of the Labor Standards Act and the spirit of the Universal Declaration of Human Rights, treating everyone equally with a friendly and inclusive attitude. During the reporting period, the number of foreign migrant workers at the company increased. The company's welcoming environment is highly valued by foreign migrant workers.

三、Emphasis on Gender Equality

The composition of a company's employees reflects its talent management status and provides insights into whether it is fulfilling its social responsibilities. ChunYu's employees are all full-time. Due to the nature of the work, the majority of employees are male, but there are also female employees. Given this gender structure, ChunYu places even greater emphasis on the social responsibility of gender equality, providing both male and female employees with legally mandated parental leave. Prospering together with employees is an unwavering value belief that ChunYu has held firm to in its development.

一、Employee Rights Protection

To safeguard employee rights, the company will issue advance notice in accordance with relevant labor laws whenever there are significant operational changes or if it intends to terminate the employment relationship with employees. According to Article 16 of the Labor Standards Act, if an employer terminates an employment contract under the provisions of Article 11 or the exception in Article 13, they must provide notice as follows: for employees who have worked continuously for more than three months but less than one year, a ten-day notice is required; for those who have worked continuously for more than one year but less than three years, a twenty-day notice is required; and for employees who have worked for three years or more, a thirty-day notice is required.

ChunYu's recruitment, selection, and hiring processes do not discriminate based on gender, race, nationality, age, or other factors. The company also complies with Article 44 of the Labor Standards Act and Article 29 of the Occupational Safety and Health Act, ensuring that no child labor is used.

Employee safety and health are also areas of active concern for ChunYu. The company and its suppliers do not force employees to work overtime or beyond their regular hours. The relevant management practices are outlined in the internal operational standard (3.2.2), which complies with the regulations set forth in Chapter 4 of the Labor Standards Act regarding working hours.

To enhance employee knowledge, improve working conditions, and strengthen labor-management cooperation to achieve a state of labor-management symbiosis, the company has established a collective agreement. This agreement balances the rights and obligations of both labor and management, promotes labor-management cooperation, and safeguards employee working conditions. To fulfill the commitment to employees' right to work, the company informs employees in advance of any changes due to organizational adjustments, such as the establishment, relocation, or consolidation of units. If there is no suitable work available for employees due to changes in the nature of business operations, or if employees are unable to perform their assigned tasks, the company terminates the employment contract in accordance with the provisions of the Labor Standards Act, providing at least 10 to 30 days' notice, depending on the length of employment.

ChunYu Factory Co., Ltd.'s labor union is composed of employees, with the members' (representatives) assembly serving as the highest authority. The union also has a board of directors and a board of supervisors, which together form the governing bodies. The members' (representatives) assembly convenes at least once a year. A total of 420 employees participate in the union, accounting for 71.6% of the company's 587 full-time employees as of the end of 2022. In 2022, the company regularly held labor-management meetings with the union and labor representatives to exchange opinions on various issues, ensuring effective communication. A total of four labor-management meetings were held in 2022. Additionally, other communication platforms were utilized to strengthen the stability of labor-management relations.

二、Advocacy for Labor Human Rights

Taiwan is a land that embraces and accepts diverse ethnicities, and ChunYu inherits this spirit of diversity by pursuing a varied workforce. In recruitment, performance evaluations, promotions, and other processes, the company does not use gender, age, appearance, race, or ideology as criteria for assessment. We are vigilant against any form of discrimination and treat every employee equally, placing great importance on and committing to protecting the rights of different groups. During the reporting period, the company has complied with labor rights regulations and has not encountered any incidents of violating the human rights of indigenous peoples. In the unfortunate event that an intolerable violation occurs, the company has established complaint channels and subsequent response measures to ensure accountability.

ChunYu's recruitment, selection, and hiring processes do not discriminate based on gender, race, nationality, age, or other factors. The company also complies with Article 44 of the Labor Standards Act and Article 29 of the Occupational Safety and Health Act, ensuring that no child labor is used.

In addition, employee safety and health are areas of active concern for ChunYu. The company does not force employees to work overtime or beyond their regular hours. The relevant management practices are outlined in the internal operational standard (3.2.2), which complies with the regulations set forth in Chapter 4 of the Labor Standards Act regarding working hours.

一、Training

ChunYu Company values the development of each employee's job competencies and lifelong learning. Each year, the company allocates resources to enhance employees' professional skills and safety knowledge. Based on the different job roles and levels of the operational staff, specific professional training and certification programs are established. The company implements a promotion system that integrates training measures, aiming to enhance employees' knowledge, skills, and foster a positive work attitude. The career development learning roadmap and information on training hours can be found in the table below. In 2022, the average training hours for female employees differed from those of male employees primarily due to the gender distribution within the company, with males constituting 77% and females 23%. This significant gender disparity contributed to the difference in average training hours.

二、Key Performance Management System

To achieve organizational performance goals and unlock employee potential, ChunYu Works has established the "Employee Performance Appraisal Standards" to create a fair and equitable performance evaluation system. The performance evaluations at ChunYu are conducted annually at the end of the year, where supervisors at all levels assess the daily work performance of their subordinates. They review the achievement of goals and key performance indicators based on principles of fairness and justice, following rigorous operational procedures. Except for probationary employees and those who have returned to work within the current year, all other employees are subject to evaluation, and the results of these performance assessments will serve as the basis for employee rewards and promotions.
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一、Company Benefits

ChunYu provides the following benefits to its employees

•Uniforms, safety shoes, and helmets

•Recognition awards for long-serving employees

•Marriage,funeral,transportation,and communication allowances

•Year-end and Lunar New Year party activities

•Labor insurance, National Health Insurance, and group insurance

•Regular health checkups,with a full-time nurse and on-site doctor services

•Monthly 6% contributions to the new labor pension system and full contributions to the old labor pension reserve fund

•Bereavement support system

The Employee Welfare Committee provides the following benefits

•Emergency relief funds

•Holiday bonuses

•Educational scholarships and grants

•Subsidies for club activities

•Domestic and international employee travel subsidies

 

The labor union provides the following benefits

•Protection of members’ rights

•Marriage and funeral assistance

•Support for injuries and illnesses

•Commemorative gifts for members

二、Remuneration

COUNTRY AND REGION

THE RATIO OF THE ANNUAL TOTAL COMPENSATION OF THE HIGHEST-PAID INDIVIDUAL IN THE COMPANY TO THE MEDIAN ANNUAL TOTAL COMPENSATION OF EMPLOYEES (EXCLUDING THE HIGHEST-PAID INDIVIDUAL).

THE RATE OF INCREASE IN THE ANNUAL TOTAL COMPENSATION OF THE HIGHEST-PAID INDIVIDUAL IN THE COMPANY COMPARED TO THE INCREASE IN THE ANNUAL TOTAL COMPENSATION OF EMPLOYEES (EXCLUDING THE HIGHEST-PAID INDIVIDUAL).

TAIWAN

0.12

0.31

ChunYu places great importance on the concept of gender equality. Due to the nature of the industry, the proportion of female colleagues is relatively low, and the work primarily involves administrative support or factory operations, resulting in a noticeable disparity in pay between men and women. However, within the same job positions and under similar educational and experiential backgrounds, the salary and benefits are standardized and consistent for both genders, with no discrepancies based on gender.

To fully achieve gender equality and pay equity, ChunYu implements a system that provides salary adjustments, differentiated bonuses, or promotions based on individual performance and the value created for the company. The promotion pathways are transparent and fair. Over the past two years, the proportion of female supervisors at the team level and above has continued to increase, reflecting ChunYu's commitment to creating a balanced workplace for both genders.

三、Employee Retirement System

Old Retirement System Eligibility

Employees' retirement eligibility under the old system the labor retirement reserve fund supervisory committee is established in accordance with the law to specifically manage the old-age pension and related retirement operations. The old-age pension contributions are set at 4% of the monthly salary for employees with old-age pension service years, deposited monthly into the old-age pension reserve account at Taiwan Bank. An actuarial report is also provided annually by an actuary to ensure that the old-age pension reserves are sufficient and comply with the calculation standards for employees' pensions as stipulated in Article 55 of the Labor Standards Act. When an employee meets the retirement eligibility criteria, their pension is calculated according to Article 55 of the Labor Standards Act, and the pension is disbursed to the retired employee from Taiwan Bank.

Retirement Policy

In accordance with the provisions of the Labor Pension Act, for employees who joined after July 1, 2005, or for existing employees who choose the new pension system, 6% of employees' monthly salaries to their pension accounts as required by law.

四、Parental Leave

To ensure that employees can focus on parenting with peace of mind, our company follows the provisions of the Labor Standards Act and the Gender Equality in Employment Act by implementing a parental leave system that allows employees to take unpaid leave for childcare. This system enables our colleagues to achieve a balance between work and family life. For employees who need to care for children under the age of three, we assist them in applying for parental leave and ensure that they are reinstated to their original positions upon the completion of their leave. We actively support employees in reintegrating into the workplace, fully demonstrating and fostering an environment that allows them to raise their children with confidence.