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News Analysis: Taiwan's Labor Force Gets New Council To Handle

Published: 08/10/1987
Source: Free China Journal
By: Hamilton Huang

To meet the enormous demands of the more than five million workers in the Republic of China on Taiwan, the government has created a Labor Council.

Effective as of Aug. 1, the new council is headed by Cheng Shui-chih, former political vice minister of the Interior Ministry.

The newly created council is not necessarily a transformation nor even an expansion of the now-defunct Labor Affairs Department which long suffered a serious manpower problem because of its low administrative status under the Interior Ministry.

Rather, the Labor Council's inception is not only an indication of the government's determination to better serve the welfare of the country's labor force but also an example of the progress the nation has made in the last four decades in the political, social and economic spheres.

In other words, the birth of the council--which some feel should have been a full-fledged ministry--is a symbol of the momentum built up over long years that is beginning to emerge now as a source of energy for the nation's overall reform programs.

The establishment of a specific, cabinet-level, government agency to handle the ever-increasing, urgent and complex labor issues was indeed long overdue.

Taiwan had less than a million members in its labor force in the early 1950s when the ROC's industry was still in its infant stage and generating far fewer employment opportunities than the agriculture sector.

But as the pace of the nation's industrial development began to accelerate, an increasingly larger percentage of the population joined the textile, electronic and other manufacturing businesses.

Now the number of so-called blue collar workers has reached five million, or roughly one quarter of the population.

It was the enormity of such a labor force that caused many people in this country, particularly members of the press and outspoken political oppositionists, to criticize the woefully understaffed Labor Affairs Department of the Interior Ministry for not being able to handle all the problems connected with such an important facet of the population.

Prior to Aug. 1 when its duties were handed over to the new Labor Council, the Labor Affairs Department had only 300 people in the entire country to handle the nation's labor policies and administration, enforcement of regulations, inspection of companies and factories, supervision of safety regulations and the administration of hygiene standards for workers.

Because of its low bureaucratic status, the number of employees the very vital department could hire was limited and there were only 37 regular staff members, plus a dozen or so temporary employees.

And, there were no more than three people responsible for regional labor affairs in each city and county government.

It became obvious long time ago that the critics were right, that the country and its work force had outgrown the little bureau that no longer could keep up with the rapid and dynamic changes taking place in the ROC.

The Labor Council itself will have its hands full--even with its new, more powerful voice--keeping up as the nation becomes more and more involved in the world business community and becomes a bigger target for foreign pressure.

Years of actively promoting export businesses and imposing strict controls on the out-flow of foreign currencies have resulted in an astronomical amount of trade surplus for the ROC--now somewhere around US$60 billion.

But one man's meat is sometimes another man's poison, as the adage has it, and these figures have been attracting much undesirable reaction from the ROC's trading partners, especially the U.S., which has been on the other end of the stick and suffering record trade and budget deficits.

The more protectionist elements in the U.S., not surprisingly, have been looking for various channels to reduce the tremendous trade gaps between itself and the export-oriented countries with which it deals throughout the world. In the case of the ROC, the difference was about US$13.6 billion last year in our favor--pointing up the fact to everyone that we are becoming a new Asian economic power.

It appears now that the Americans might try to give credibility to their protectionist measures by shining a light on the difference in the benefits and conditions afforded their workers as opposed to that of the foreign countries they feel might be getting richer at U.S. expense by possible exploitation of cheaper labor.

There are indications that the Americans (and U.S. labor unions) may charge that such foreign governments are allowing their companies to engage in unfair competition by their failing to live up to the labor standards that Western countries provide for their workers.

No matter the pros and cons of the argument or the motives bringing the pressure to bear, the trade-deficit-conscious international community has indirectly brought about the creation of the Labor Council in the ROC.

But the time has come, anyway.

Even without the outside pressures and what many might call "foreign intervention"--the need for the Labor Council was there because of the internal pressures being brought about by the dynamic growth of Taiwan.

It was an eventful and timely birth that can only lead to more harmonious relationships both within and outside the country.

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Copyright (c) 2001 Government Information Office, Republic of China